The UK will begin to suffer a lengthy economic recession if Prime Minister Theresa May fails to reach a Brexit deal with the European Union, experts warn.
Britons will experience rising unemployment and inflation rate as well as falling household incomes all of which will result in a recession in case of “no-deal” Brexit, according to an analysis by the global rating agency Standard & Poor’s.
“Unemployment would rise from current all-time low of 4% to 7.4% by 2020 – a rate last seen in the aftermath of the financial crisis,” it said.
“House prices would likely fall by 10% over two years” and “household incomes would be £2,700 lower a year after leaving without a deal,” it added.
There would also be a downgrade to the UK’s credit rating, which would lead to a rise in the Treasury’s borrowing costs, warned S&P, adding it still expected both the UK and the EU to strike a deal before next March, when the UK is…