No-deal Brexit means recession
The UK economy will shrink 1.5% in 2020 is there’s a no-deal Brexit. However, should Britain conclude a deal it would prove a fillip to the economy, with GDP spiking 1.5% next year, according to KPMG.
“With the Brexit debate poised on a knife edge, the UK economy is now at a crossroads,” says Yael Selfin, chief economist at KPMG UK. It is difficult to think of another time when the UK has been on the verge of two economic outturns that are so different, but the impact of a no-deal Brexit should not be underestimated.”
Selfin adds that the UK economy now has the potential to strengthen over the next 12 months but that leaving the EU without a deal risks triggering the country’s first recession for a decade.