Study warns UK economy could shrink by 3.7% if protectionism gains momentum

Influence of rise in protectionism

A study by The Atlantic Council and Zurich Insurance has found the UK economy could shrink by 3.7% by 2035 if the global protectionist stance gains momentum.

As the US and other economies begin to take a more protectionist stance on trade, The Atlantic Council, in cooperation with Zurich Insurance, looked at the potentially damaging effects on the global economy over the next 18 years. A "protectionist victory" scenario, consisting of a significant reduction in trade in goods and services, and in foreign direct investment as a share of GDP, would see the UK economy shrink by 3.7% in 18 years' time. But the hardest hit among the G20 members would be South American economies, with Argentina and Mexico seeing the greatest percentage GDP drops...