No-deal Brexit risks deepening U.K. recession: budget watchdog

By Thomson Reuters ·

British lawmakers due to vote on measure aimed at avoiding a no-deal

Vincent Kessler/Reuters

British Union Jack flags are seen on the desks of members of the Brexit Party at the European Parliament in Strasbourg, France. A no-deal Brexit could plunge the U.K. into a deep recession, the Office for Budget Responsibility said Thursday.

A no-deal Brexit would hurt confidence and deter investment and lead to higher trade barriers with the European Union, pushing down the value of the pound and causing the economy to contract by 2 per cent by the end of 2020, the OBR said, referring to forecasts by the International Monetary Fund.

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