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“For the U.K., and for Johnson in particular who faces more and more political challenges, the temptation will be great to group the economic disruption from Covid and Brexit together,” Anna Rosenberg, from the advisory firm Signum Global, told CNBC.
She explained the prime minister can blame the economic disruption on the pandemic ahead of four additional years in office to fix the economy.
“Of course, the hit to the U.K. economy will be unwelcome and we have to brace for a significant recession, irrespective of the final Brexit deal,” she also said.
However, the EU would also lose from a no-trade deal with the U.K., mainly at a time when the region is also facing economic challenges.
“For the EU, a Brexit outcome in the absence of a comprehensive deal will be bad news,” Rosenberg said, “it will hit already fragile firms across the EU and add to the economic worries.”
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