Brexit economy doomsters skewered for ‘peddling alarmist claims’

Brexit doomsters have been torn apart for “peddling alarmist claims” over the impact on the UK economy following the departure from the European Union. Britain voted to leave the European bloc during the historic referendum in June 2016, with Brexit Britain’s potential continuously talked up by former Prime Minister Boris Johnson. But it has not stopped Remainers blaming Brexit on most economic crises to hit the country and attempting to inject momentum into a movement they hope will one day reverse the referendum result.This has come even more into focus with the recent chaos engulfing the UK economy, with elements such as the cost of living crisis and struggling pound leading to fears of a deep recession in 2023.However David Wighton, who is The Wall Street Journal’s (WSJ) City Editor in London, has warned: “Don’t listen to the alarmist claims about Brexit and the economy.”In an article for The Times, he cites recent comments from former Bank of England Governor Mark Carney, who said that “in 2016 the British economy was 90 percent the size of Germany’s. Now it is less than 70 percent”.Mr Wighton warned the comment from the former BoE boss is “very misleading” and hit back: “The fall in the relative value of the UK economy he cites is due to currency movements, not the underlying performance. Brexit news: Remainers have been torn apart over their criticisms (Image: GRETTY) Brexit news: Remainers have been campaigning for the UK to rejoin the EU (Image: GETTY)”Despite the impact of Brexit, which some economists estimate has knocked at least 4 per cent off the UK’s GDP, it has still grown faster than Germany’s since 2016, as Carney must know.”He also explained that exchange rates fluctuate and said the value of the Japanese economy has fallen by a fifth compared with the United States in the past year.The WSJ City Editor for London added: “If Carney had gone back to 2013, when the effective sterling exchange rate was similar to today’s, the decline in the relative size of the UK economy, even on his measure, disappears. But many people who read Carney’s comment wouldn’t realise that.”They would assume he meant that the UK was somehow producing 20 percentage points less relative to Germany. That was clearly how it was interpreted by some anti-Brexit commentators.”READ MORE: Braverman blasts £6.8million taxpayers’ bill for migrant hotel rooms Brexit news: Boris Johnson talked up the benefits of the UK leaving the EU (Image: GRETTY)Also last month, billionaire private equity investor Guy Hands warned Britain risks becoming the “sick man of Europe” and needing a bailout from the International Monetary Fund (IMF) unless Brexit is renegotiated with the EU.But Mr Wighton warned very few mainstream economists would believe there is even the slightest risk the Brexit Britain will require such help from the IMF. He said: “So why do ‘experts’ make such statements and commentators repeat them? Perhaps they are so convinced that Brexit is a total economic disaster that the claims feel right, or have what Stephen Colbert, the American comedian, dubbed ‘truthiness’.”They may also think that by painting a scary picture they can help to build public support for a change in government policy. People like Carney and Hands are right to make the case for a reset of relations with the EU.DON’T MISSCash is king again rates hit 5% as Barclays, Lloyds and NatWest hike [OPINION]Robert Jenrick sets out ‘root cause’ of problems at Manston [INTERVIEW]Sturgeon either lied to Scotland or was too dim to figure out EU rules [OPINION] Brexit news: Mark Carney’s recent comments have come under attack (Image: GETTY)”What they should not do is exaggerate the impact of Brexit and the perils facing the British economy. That can badly backfire, as we discovered with Project Fear during the referendum campaign.”Mr Wighton explained how bankers “may be right” that forecasts about a flurry of takeovers are imminent might now becoming a reality.But he warned: “In recent years there has been a wave of British companies falling to overseas buyers and it seems likely that once markets stabilise the bids will start again.”At that point, vulnerable UK companies will not thank those who have been peddling alarmist claims about Brexit and the British economy.Last week Mr Hands, a long-time supporter of the Conservative Party and Remainer, seized on the leadership chaos to demand a reversal of Brexit. Brexit news: The key moments that led to the UK’s departure from the EU (Image: EXPRESS)He warned the UK economy is “doomed” unless the country reverses Brexit and the “British people didn’t want and didn’t vote for Truss’s extremist hard Thatcherite Brexit”, claiming it has “failed”.The Tory donor also warned: “Britain is on the path to be the sick man of Europe and a bailout from the IMF.”Mr Hands said: “Brexit is completely hopeless and has led us to a disastrous state. The economy is doomed”.He also called for the Government to “move on from fighting its own internal wars and actually focus on what needs to be done in the economy”.