Mark Carney: no-deal Brexit economic shock will impact world

Written by Tom Freeman on 13 February 2019 in News

MPs must solve the Brexit impasse amid threats to world economy, warns Bank of England governer Mark Carney

Mark Carney - PA

The UK leaving the EU without a deal in place could have a significant impact on the global economy, Bank of England governor Mark Carney has said.

In a speech in London, Carney said a no-deal Brexit would undermine economic growth across the world at a time when economies are already slowing and tensions are rising in global trading relationships.

The Bank of England has already revised growth forecasts down for the UK economy as government and MPs continue to fail to reach any agreement.

"It is in the interests of everyone, arguably everywhere" that a Brexit solution is found and a smooth transition is secured, Carney said.

"A no-deal would be an economic shock for this country, and this would send a signal globally about re-founding globalisation. That would be unfortunate," he said.

Economies across the world are slowing, Carney said, particularly in China, warning policymakers not to be complacent.

"Although the economic and financial imbalances in the global economy do not yet appear to contain the seeds of their own demise, global momentum is softening," he said.

The UK economy saw a sharp contraction in December, expanding at its slowest annual rate in six years in 2018.



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