Most economists say Brexit will harm UK economy

30/05/2016 05:09 AST

Nine out of 10 of Britain’s top economists working in London’s City financial district, small business and academia believe the economy will be harmed if Britain leaves the European Union, a poll said on Sunday.

The poll, which the Observer newspaper said was the biggest of its kind drawing responses from more than 600 economists, is a boost for Prime Minister David Cameron, who is leading the campaign for Britain to stay in the 28-member bloc at a referendum on June 23 despite opposition from some in his party.

Carried out by pollster Ipsos-MORI, the poll found that 88 per cent of those asked said an exit from the EU and the single market would most likely damage Britain’s growth prospects over the next five years and 82 per cent said there would probably be a negative impact on household incomes.

The Observer said those surveyed were members of the profession’s most respected representative bodies, the Royal Economic Society and the Society of Business Economists.

Campaigners on both sides of the argument have targeted the economy as one of the main battle grounds to win round voters who are split in what is becoming an increasingly bitter fight over Britain’s future.

“Out” campaigners say Britain would be freed from regulation and red tape if it left the European Union, able to negotiate its own trade deals without having to please 27 other countries.

But the “In” campaign has pressed its argument that Britain would suffer an economic downturn if it left, hurting the pound, jobs and wages.

Cameron said in a statement: “This poll confirms the overwhelming view of economists - leaving the EU would damage our economy, costing jobs and increasing prices.”

Meanwhile, the risk of a British exit from the European Union has the government in Denmark, an EU member that hasn’t adopted the euro, preparing for the worst.

While most polls suggest UK voters probably won’t back a so-called Brexit, the June 23 referendum on whether to stay or go still threatens to cause disruption on a scale that is forcing European governments to react. Danish Finance Minister Claus Hjort Fredriksen says there’s no way of knowing what will happen.

The Gulf Today