OBR: No-deal Brexit will spark recession

Asset prices and sterling fall 'sharply'

A sharp decline in investment into the UK and higher trade barriers with the European Union in the event of a no-deal Brexit will plunge the country into a recession, according to the Office for Budget Responsibility (OBR).

The OBR's Fiscal risks report, published on Thursday (18 July), forecasts that real GDP will fall by 2% by the end of 2020, while the UK's debt is set to spiral by an additional £30bn per year than was predicted it March. Brexit Blog: Treasury Committee demands 'rigorous' BoE, Treasury analysis Its forecast, which was established by Parliament in 2015 to identify and analyse risks to the medium-term outlook for public finances and long-term fiscal sustainability, comes ahead of the UK's 31 October departure date. Compiled with the assistance of the International Monetary Fund, the ...