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Without a Brexit deal, the UK economy could collapse



British Prime Minister Theresa May 28 November in the House of Commons in London.
British Prime Minister Theresa May 28 November in the House of Commons in London. Jessica Taylor / AP

What happens if the United Kingdom leaves the European Union without agreement with Brussels? The Bank of England attempted to answer this question on Wednesday, November 28, and the forecasts were rather bleak. In assessing the different exit scenarios from the EU, the institution envisages the collapse of 25% of the pound, if there is no agreement with Brussels.

Read our Liverpool report: with Brexit, "people feel they have"

The Bank of England adds that in the case of this darkest scenario, the British gross domestic product (GDP) is reduced from 7.8% to 10.5% by 2024 compared to Brexit. Other indicators: the unemployment rate will increase to 7.5%, and inflation – to 6.5%, and real estate prices – by 30%.

Even if close relations with the EU are maintained, by 2024, GDP will be reduced from 1.2% to 3.8%, according to the Bank of England, who welcomed the agreement quite favorably. Brexit was discussed by Prime Minister Theresa May, who will be voted in the British Parliament on 11 December.

Read also Brexit: what scenarios in case of failure of the British Parliament?

No second referendum

“Our task is not to hope for the best, but to prepare for the worst,”This was announced at a press conference by the Governor of the Bank of England Mark Carney. Earlier in the day, a government report estimated GDP loss at 9.3% over fifteen years. The least affected sectors in the absence of an agreement will be cars and chemicals, affecting more than 20% of production, said the government report.

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Opponents of the United Kingdom’s withdrawal from the Union immediately took the opportunity to denounce False Promises Brexiters in the era of prosperity, which is expected to follow the divorce, set on March 29, 2019. "Just this morning, the Chancellor [le ministre des finances, Philip Hammond] finally, I recognize one thing: we would be better off staying in the EU "said Labor MP Alison McGovern.

The British Prime Minister began a tour of the United Kingdom on Tuesday in Northern Ireland to defend the agreement approved on Sunday by 27 countries of the European Union. According to her, there is no other possible agreement. If he is rejected by the British deputies, the United Kingdom will face Brexit without an agreement. Mto me On Wednesday, she also confirmed that she did not want a new referendum on British withdrawal from the EU.

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