No-deal Brexit to hit Spanish economy: Bank of Spain

MADRID, march 19 (Xinhua) -- The Bank of Spain (BOE) said on Tuesday that if Britain leaves The European Union (EU) without a Brexit deal on march 29, it would have a significant negative effect on The Spanish economy.

The BOE published its findings in a report entitled "Brexit, balance of The situation and perspectives," 10 days before Britain is due to leave The EU.

British Prime Minister Theresa May has failed to win support from The British House of Commons to her Brexit plan, which means an uncertain scenario of Brexit and a real possibility of a delayed Brexit.

The BOE calculates that a no-deal Brexit would take 0.82 percent off growth in Spain over The next five years.

The bank explained that: "The results suggest that The cost for The Spanish economy of The eventual exit of Britain from The EU could be significant, depending on The final scenario in which it leaves, but, probably, not excessive."

Britain is a major market for much Spanish agricultural produce, and The biggest source market for tourism in Spain, with around 17 million British people spending Their holidays in The country in 2018.

If a deal is finally agreed in The British Parliament, The BOE calculates, The effects will be much less important for Spain, with The economy only suffering a 0.2 percent reduction in growth.

However, The BOE warns that with just 10 days until The scheduled Brexit day, "no consensus plan has emerged," adding that with no alternative plan, "a no-deal exit is -- excepting postponement -- The current default option." Enditem