Bank of England: No-deal Brexit could lead to economic collapse

Anca Alexe 29/11/2018 | 08:02

The Bank of England has warned that a no-deal or “disorderly” Brexit could lead the UK towards an economic slump worse than the 2008 financial crisis, Sky News reports.

A no-deal Brexit would mean no new trade deals, severe disruption t borders and uncertain economic conditions – and that could make the UK economy shrink by nearly 8 percent. The Bank notes that the report contains scenarios, not forecasts – “what could happen, not necessarily what is most likely to happen.”

House prices could fall by 30 percent, while unemployment could double and inflation may go as high as 6.5 percent. Under those circumstances, the interest rate could spike to 5.5 percent. The British pound would also see sharp losses in its value.

If such a scenario becomes a reality, migration in Britain would actually turn negative, with 100,000 people living the country due to the economic downturn.

The bank’s report comes on the same day that a government report concluded that a no deal Brexit could mean the UK economy growing by 9.3 percent less over the coming 15 years, compared to staying in the EU.

 

Photo: dreamstime.com

BR Magazine | Latest Issue

Download PDF or read online: July August 2022 Issue | Business Review Magazine

The June 2022 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “Companies Embracing Sustainability For A Better Future” Read it online
Anca Alexe | 02/08/2022 | 10:15

You will receive a download link for the latest issue of Business Review Magazine in PDF format, based on the completion of the form below.

I agree with the Privacy policy of business-review.eu
I agree with the storage and handling of my data by business-review.eu

Close ×

We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

Accept & continue