Britain will start negotiations to leave the EU in March next year. According to new estimates issued by the Office for Budget Responsibility (OBR) last Wednesday, the cost of BREXIT is going to be quite high. Between 2017-8, the OBR forecasts that the UK’s national debt will climb to a 52-year high. Over the next five years, the UK government will have to borrow an additional 122 billion pounds (approximately 4.88 trillion NT dollars) and GDP growth is expected to be 2.4 percent lower.
The OBR’s latest estimates were reported in Parliament by Britain’s Chancellor of the Exchequer Philip Hammond in the first budget statement by British Prime Minister Theresa May’s government since Britain’s referendum in June to leave the EU. The OBR predicts UK GDP growth will fall from this year’s 2.1 percent to 1.4 percent next year.
The OBR’s report warns that over the next five years Britain must borrow an extra 122 billion pounds on top of the forecast figure. Former chancellor George Osborne had originally aimed to achieve a budget surplus of 10.4 billion pounds in the fiscal year 2019-2020. The British government now expects the deficit to reach 22 billion pounds.
Source article: http://www.taipeitimes.com/News/lang/archives/2016/11/29/2003660175