The UK’s Office for Budget Responsibility, OBR, has warned that leaving the European Union later this year without a Brexit deal would plunge the United Kingdom into recession.
OBR, which is the country’s spending watchdog said that the Public borrowing could double next year as the recession would shrink the economy by 2%, push unemployment above 5% and send house prices tumbling by around 10%,
The UK is set to leave the European Union on 31 October.
Chances of a no deal outcome appear to have risen recently, after both Tory leadership contenders said they would be willing to leave the EU without a deal.
The scenario comes after tariffs of four percent were imposed on goods traded with the EU from zero although the IMF does not expect disruption at the border.