LONDON—The chances of Britain ending up outside the single market when Brexit talks are concluded have receded somewhat after last week’s election, although the pound might weaken further against other currencies, a Reuters poll of economists found.
Ahead of the election, Prime Minister Theresa May had been expected to win a landslide victory—an outcome Reuters polls had predicted would be best for both sterling and Brexit talks—but as voting day approached those opinion polls narrowed.
In the end, May’s Tory party failed to win a majority in parliament, prompting calls for her plan to leave the EU’s single market to be watered down and leading some rival lawmakers to demand the Brexit process be delayed.
Droves of newly registered young voters—many of whom voted to stay in the EU—backed the opposition Labour Party, scuppering May’s hopes of a walkover win.
Around two-thirds of the economists polled this week, 33 out of 49, said the chance of a hard Brexit had receded somewhat. Three said it had receded significantly, while eight said there was no change. Five said it had increased somewhat and none said increased significantly.
