forex GBP/USD: Johnson’s Brexit Deal Could Cost Britain 70 billion Pounds

[Anzo Lim 0]

British Prime Minister Boris Johnson’s new Brexit deal could hit the country’s economy harder than leaving EU without a deal, according to the National Institute of Economic and Social Research (NIESR), UK’s prestigious independent economic research organization with the longest history. While UK’s economy is estimated to shrink by 5.6%, the deal which Mr. Johnson and EU had agreed upon will likely cost the country around 70 billion pounds.

 

It’s estimated that according to Mr. Johnson’s proposal, Britain’s economic growth will drop by 3.5% in the next decade, which is as much as taking away the economic production of Wales from the total.

Even if no significant change happens to UK’s relation with the EU for a while, UK’s growth from 2019 to 2020, estimated at 1.4%, is still lower than the 1.6% growth in 2018, as well as long-term average growth. The UK in a Changing Europe, another British think tank, also estimated that the PM’s Brexit deal will lead to over 6% of decrease in the country’s average income.

 

GBP/USD daily pivot points: 1.2876--1.2890

 

S1: 1.2859         R1: 1.2921

 

S2: 1.2821         R2: 1.2945

Source: WikiFX App