Study: Johnson's Brexit deal costs UK economy 70 billion pounds

United Kingdom and Gibraltar European Union membership referendum

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The British Institute for Economic and Social Research (NIESR) expects the Brexit deal in the coming years at a cost of about 70 billion pounds (81 billion euros).

The gross domestic product will be about 3.5 percent lower in ten years than in the case of EU membership in the UK, said the independent institute in London. Annually, the economy will yield by the deal of Prime Minister Boris Johnson by three percent, which corresponds approximately to the economic power of Wales.

The government rejected the results. She is planning a more ambitious free trade agreement with the EU than the study foresees, British media quoted a spokesman for the Ministry of Finance.

Declining investments expected

The Institute said an agreement on the agreed deal "would reduce the risks of a disorderly exit but prevent the possibility of a closer trade relationship with the EU."

One reason for the economic downturn is declining investment. A "no deal" Brexit would even push the economy back by 5.6 percent, the authors write.

Opposition parties cited the study as proof that Johnson's Brexit plan was badly damaging the domestic economy. "We know that no deal is as good as the one we currently have as a member of the EU," said Brexit Commissioner for pro-European Liberal Democrats, Tom Brake.

Johnson's Brussels-negotiated Brexit agreement will play a central role in the upcoming election campaign. The British Parliament had voted on Tuesday evening for early elections on 12 December. Johnson hopes to break the deadlock in parliament and bring Britain out of the European Union as soon as possible.