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Johnson's Brexit More Costly Than May's, Think Tank Says

The impact of departing under Johnson’s proposals would be as much as 7% of gross domestic product per capita after 10 years.

Johnson's Brexit More Costly Than May's, Think Tank Says
Boris Johnson, U.K. prime minister, left, waves with David Sassoli, president of the European Parliament, ahead of their meeting at number 10 Downing Street in London, U.K. (Photographer: Chris Ratcliffe/Bloomberg)

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The Brexit proposals floated by Prime Minister Boris Johnson entail a bigger economic cost than what was agreed by his predecessor Theresa May, according to The UK in a Changing Europe.

The difference between the two comes from leaving the customs union with the European Union, not having level playing field arrangements and a limited or no free trade agreement after Britain leaves.

The impact of departing under Johnson’s proposals would be as much as 7% of gross domestic product per capita after 10 years compared with staying in the EU, the think tank said. May’s deal would cost as much as 5.5% of GDP per head, while a no-deal Brexit would cause a drop of as much as 8.7%.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, David Goodman

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