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The National Institute of economic and Social Research (NIESR), a think-tank, said on Wednesday that Prime Minister Johnson's brexit agreement hurt the British economy more than further delaying brexit and the impact of continued uncertainty.
On Tuesday night, Johnson won parliamentary approval to hold a general election in early December, which he hopes will break the deadlock of brexit and promote the approval of the brexit agreement he reached with the European Union earlier this month.
Johnson's exit plan laid the foundation for a more loose economic link between the UK and the EU.
NIESR said the economic costs of a more distant relationship could outweigh the benefits of an end to uncertainty.
"We don't expect a 'negotiated dividend' at all," said Arno hantzsche, an NIESR economist. "A brexit agreement would reduce the risk of a disorderly brexit outcome, but it would also eliminate the possibility of closer economic ties."
The National Institute of economic and Social Research (NIESR) estimates that under Johnson's plan, the size of the UK economy will be 3.5% lower than that of staying in the EU within 10 years, which is about equal to subtracting the economic output of Wales.
In a situation similar to the current uncertainty, i.e. the UK continues to enjoy the economic benefits of unrestricted access to the EU market without any long-term guarantee, NIESR estimates that it will cause a drag of 2% on the economic scale.
NIESR said Theresa May's agreement limits the impact to 3%, while leaving without a deal would reduce the size of the economy by 5.6% compared to staying in the EU.

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