Brexit May Have Already Pushed U.K. Into Recession, Niesr Says By Bloomberg

© Bloomberg. Pedestrians carrying umbrellas to shelter from the rain walk past a Maplin Electronics Ltd. retail store on Tottenham Court Road in London, U.K., on Tuesday, May. 29, 2018. U.K. consumer confidence slid this month as Britons felt less secure about their jobs and the value of their houses.


© Bloomberg. Pedestrians carrying umbrellas to shelter from the rain walk past a Maplin Electronics Ltd. retail store on Tottenham Court Road in London, U.K., on Tuesday, May. 29, 2018. U.K. consumer confidence slid this month as Britons felt less secure about their jobs and the value of their houses.

(Bloomberg) — Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here.

The U.K.’s exit from the European Union may have already pushed the U.K. into a technical recession, according to the National Institute of Economic and Social Research.

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

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%.

“However we look at it, there will not be much economic joy in a no-deal Brexit,” said Niesr director Jagjit Chadha.

The pound fell after the report and traded at $1.2464 as of 10:08 a.m. in London.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link