Posted by AdviserDirect on 07/18/2019

UK to Face Recession in 2020 in Case of No-Deal Brexit - Reports

UK to Face Recession in 2020 in Case of No-Deal Brexit - Reports

MOSCOW (Sputnik) – The UK Office for Budget Responsibility is expected to forecast later on Thursday that the United Kingdom will face an economic downturn in 2020 if the country withdraws from the European Union without a deal, media have reported.

The UK economy is forecast to shrink in 2020 and recover in 2021, according to the outlet.

Still, it is likely to be at least 3 percent smaller under the no-deal scenario than if the country withdrew from the European Union with a deal, the reports added.

In 2016, UK citizens voted to leave the European Union. The country was initially set to withdraw from the bloc in March, but UK lawmakers did not endorse a Brexit deal agreed upon by London and Brussels, so the deadline was moved to 31 October.

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