Written by : Jimmy Nsubuga for Metro.co.uk
A ‘no deal’ hard Brexit would plunge the country into an immediate recession, according to a new report. The potential Tory plan would cost the British economy £400 billion and wipe 18% off GDP growth by 2030, investment firm Rabobank warned.
The study added unemployment would also jump up from 4.6% in 2018 to 6.2% in 2020, if the country went down the route of a hard Brexit in 2019. It said there was no good end in sight whatever Brexit the government chose to go ahead with. A free trade agreement (FTA) or soft Brexit would also apparently lead to a recession but this would be ‘milder and much more short-lived’.
A ‘no deal’ would apparently leave workers in the UK £11,500 poorer, while a FTA and ‘soft’ Brexit alternative would also leave us worse off to the tune of £9,500 and £7,500 respectively. Hugo Erken, senior economist at Rabobank, said: ‘By looking at dynamics such as innovation, competition, knowledge and human capital, how they will change and what effects this will have on the structural make-up of the UK and European economy, our research shows that the long-lasting impact of Brexit is likely to be more severe than initially anticipated.’