13:10 GMT +318 January 2018
Listen Live
    Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo in this October 10, 2012 file photo.

    IMF, Treasury's Forecasts on Brexit Based on Flawed Statistics – Official

    © REUTERS/ Kim Kyung-Hoon
    World
    Get short URL
    163

    The International Monetary Fund (IMF) and the Treasury’s economic forecasts that make a strong case against Brexit are based on flawed statistics, Peter Lilley, a Conservative member of parliament and former trade and industry secretary and social security secretary, told Sputnik.

    LONDON (Sputnik) — Both IMF and the Treasury predict that Brexit may trigger a 5-6 percent decline of the British economy.

    "I have done an analysis of the Treasury's forecast that says Britain will be worse-off outside the EU. It is based on flawed statistics. And exactly the same model is used by the IMF," Lilley said.

    "They have a track record of being wrong, especially on the European issues. They said we should join the exchange rate mechanism in 1980s, and we eventually did. When it became too painful, they said we shouldn't leave, as it would lead to the ‘end of civilization,’ the pound would fall and interest rates would go up. But actually from the day we left, interest rates came down and pound stabilized," he evaluated.

    On Thursday, the United Kingdom prepares to vote in a referendum on whether it should stay in or leave the European Union.

    Supporters of the UK exit from the bloc argue that EU membership has eroded Britain’s independence to legislate, direct its economy and control its borders. Proponents of the Remain campaign have argued that exit from the 28-nation bloc would devalue the national currency and hurt the country’s economy.

    Related:

    Shaking Off EU Diktat: 'UK Will Benefit From Brexit'
    Brexit May Make EU Foreign Policy ‘More Hostile’ Toward US – Lawmaker
    Boris Johnson to Make TV Apology if Potential Brexit Results in Recession
    Tags:
    Brexit, UK Treasury, International Monetary Fund, Peter Lilley, United Kingdom
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment