IMF warns U.K. on costs of ‘no-deal Brexit’

Britain’s economy would suffer “substantial costs” should it leave the European Union in March with no divorce agreement, the International Monetary Fund warned on Monday.

Brussels and London have failed to resolve “fundamental” aspects of Brexit and this could leave London defaulting to World Trade Organization (WTO) tariffs, the IMF said in its annual outlook on the U.K. economy. “Fundamental questions — such as the future economic relationship between the two and the closely-related question of the status of the land border with Ireland — remain unanswered,” it noted.