The senior economist at Berenberg told Bloomberg he believed there is still an 80 percent chance the UK will leave the European Union with a Brexit deal in March 2019. Mr Pickering claimed chances of a second referendum were also increasing but that the UK economy will thrive if any agreement with the Brussels bloc is reached. He predicted the UK to be among the top of the European growth league next year with a solid economic base.
Mr Pickering said: “We still see an 80 percent chance that the UK will come to a deal with the EU.
“In the end, exactly what that deal remains to be seen.
“My probability for a second referendum and a reversal of Brexit is edging up a little, that’s the way the logic is going in Parliament.
“But, of course, the UK outlook all depends on Brexit.
“If you get a deal UK fundamentals are actually okay.
“Evaluations for the UK look cheap so next year I’d expect the UK to surprise on the upside on the back of a deal.
“So we’ll look for growth around 1.9 percent, 1.8 percent in 2020.
“That will be close to the top of the European growth league and the Bank of England on the back of that will have to raise interest rates, probably twice next year and twice in 2020.”
The Prime Minister’s hopes of saving her Brexit deal were handed a boost last night after a Brussels commissioner admitted Europeans risked being left billions of pounds worse off unless a solution is found.
Britain could walk away without paying the £39billion promised if an agreement cannot be reached to end the deadlock, finance supremo Gunther Oettinger warned.
It would leave the remaining 27 countries forced to cover the black hole in the European Union’s budget.
Mr Oettinger’s stark warning that Brussels must be braced for the UK to leave without paying all of the money agreed in the “divorce settlement” raised hopes that EU leaders will agree to the concessions Mrs May needs to secure parliamentary approval for her deal.
A Government source said: “As the Prime Minister has said from the outset, a good Brexit deal is in the interests of the EU as much as it is the UK, which is why we remain confident we can secure the assurances on the backstop needed to persuade MPs to back this deal and ensure Britain leaves the EU on March 29 next year.”