‘Brexit may have already pushed UK into recession’ | 2019-07-23

‘Brexit may have already pushed UK into recession’

23 July, 2019 12:00 AM printer

LONDON: The UK's exit from the European Union may have already pushed the UK into a technical recession, according to the National Institute of Economic and Social Research (Niesr).

In a gloomy set of new forecasts, Niesr predicted that, even assuming a smooth exit in October, the nation will grow 1 per cent in 2019 and 1 per cent in 2020. There's an around a one-in-four chance that the economy is already shrinking, the think tank said, report agencies.

The outlook worsens if there a no-deal Brexit, with Niesr seeing the possibility of a "severe" downturn in the event of a disorderly departure. Even if an "orderly" no deal exit is secured, Niesr says the economy will stagnate next year, with inflation accelerating to 4.1 per cent.