The World Bank has issued a gloom-ridden forecast for how a no-deal Brexit could affect nations from Egypt to Morocco in the event of Britain leaving the EU without trade deals in place. The Washington-based organisation also listed Belarus, Ukraine and Moldova in the east and countries around the Mediterranean as those who could feel the sting of a bad Brexit deal. Franziska Ohnsorge, the report’s author, said: “Brexit without a deal is a risk to the UK and to Europe and any region that trades heavily with them. “It means that countries in eastern Europe like Moldova and as far away as Georgia and those in North Africa will be affected.”
The stark warning from Mr Ohnsorge comes after the World Bank urged economists to be aware of “darkening skies” brewing in the world economy.
The bank trimmed its annual global growth forecast by 0.1 percent for 2019, bringing it down to 2.9 percent.
For 2020, the World Bank is predicting 2.8 percent growth for the global economy.
Emerging markets also felt the pinch of the bank’s forecast, with the prediction for growth slashed to 4.2 percent, down from 4.7 percent.
As well as listing Brexit as one political uncertainty facing the economy, the World Bank also pointed the finger of blame to an ongoing trade war between the United States and China.
Market turmoil in the US has also had a negative impact on global stocks, the World Bank said.
CEO Kristalina Georgieva said: “At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead.”