Mike Gapes, MP for Ilford South, made the comments on Sky News after presenter Adam Boulton suggested the UK economy needed a “shock”.
Mr Gapes said: “There are issues about lack of skills, technical education, about our attitude compared to Germany.
“But within the EU, Germany is doing very well with all of those things and isn’t proposing to leave.
Mike Gapes said Brexit may cause a "terrible shock" on the UK economy
Well it will be a shock, it may be a terrible shock
“You can do all those domestic issues about your education and training without crashing your economy and leaving the EU."
At which point, presenter Adam Boulton cut in to say: “Well maybe you need a shock.”
But Mr Gapes replied British citizens may regret their decision to vote for Brexit after its economic impact hits.
He said: “Well it will be a shock, it may be a terrible shock and maybe in a few years’ time people will say, ‘we’re getting more levels of immigration than we had before, or the same, because we need it for our economy, why on earth did we ever vote to leave?’”
Brexit Negotiations: Britain's sternest enemies Tue, April 4, 2017
According to a new index, the EU27 countries fall into three groups: hard-core, hard and soft. These are the countries with the highest scores which indicate a fairly strong opposition to Britain’s position
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France has the highest score in the index at 32.5
“I think the will of the people was a complicated question. Lots of people voted for lots of different reasons to leave the EU.
“What they didn’t vote for was to crash the economy and make themselves poorer and the problem with these proposals is they would have serious economic impact on our country, particular sectors like agriculture, food processing, the NHS would be very badly affected by this.”
Mr Woolfe, who quit the eurosceptic party last year, is demanding unskilled migrants are banned from Britain for five years in order to bring yearly net migration down to 50,000.
In the same report, he argues in favour of a new visa scheme which combines the Australian points-based system and plans for work permits to be rolled out post-Brexit.