LONDON, Nov. 15 (Xinhua) -- Although British prime minister's cabinet approved the draft Brexit deal on Wednesday, her Brexit minister resigned in protest. The next few months promise considerable political upheaval, triggering significant market volatility, said a think tank headquartered in Oxford on Thursday.
"The UK cabinet's approval of the draft withdrawal deal means the EU can call a special summit to consider the agreement," said Oxford Economics in its Economics Daily titled as "Another wobbly step down the road towards a Brexit deal".
The think tank said, the special European Council summit is due to be held on Nov. 25 for the EU's 27 members to formally sign off on the draft agreement. But for the UK, the biggest obstacle still lies ahead: parliamentary ratification.
"While the UK is one step closer to an orderly exit from the EU in March, the risk of a 'no-deal' Brexit remains high," said Andrew Goodwin, associate director at Oxford Economics.
"The only thing that seems sure now is that the next few months will see considerable political upheaval, triggering bouts of significant market volatility," he added.
According to the think tank's forecast, a "no-deal" Brexit would reduce the level of UK GDP by 2.7 percent by the end of 2023 compared with their baseline forecast. The impact on other EU countries is much smaller, with the biggest impacts on those countries which either have strong trade links with the UK or are particularly reliant on trade.
Oxford Economics is an independent global advisory firm, providing reports, forecasts and analytical tools on 200 countries and regions as well as some 100 industrial sectors.
