UK economy will shrink without Brexit deal, IMF warns

London

BRITAIN'S economy will shrink if it leaves the European Union without a Brexit deal and it will suffer some damage whatever terms it agrees, the International Monetary Fund said on Monday, challenging the promises of some Brexit supporters.

The Fund predicted Britain's economy would grow by about 1.5 per cent a year in 2018 and 2019 - lagging Germany and France - if a broad Brexit agreement was struck. "I'm a desperate optimist, and I very much hope and pray that there will be a deal between the European Union and the UK," IMF managing director Christine Lagarde said.