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UK faces prospect of recession and downgrade, S&P warns

A leading credit ratings agency has warned that Britain faces the prospect of recession if it crashes out of the European Union in March next year without a deal on future relations

Reported by: AP [ Published on: October 31, 2018 2:15 IST ]
Image Source : AP UK faces prospect of recession and downgrade, S&P warns

LONDON (AP) — A leading credit ratings agency has warned that Britain faces the prospect of recession if it crashes out of the European Union in March without a deal on future relations.

In a report published Tuesday, Standard & Poor's said "no-deal Brexit could push the U.K. economy into a moderate recession and lower the economy's long-term growth potential."

Most of the loss in economic output the agency projects — about 5.5 percent over three years compared to its base case estimate — would "likely be permanent."

Standard & Poor's also said unemployment could rise to 7.4 percent by 2021 and inflation would more or less double from current rates to 4.7 percent in the middle of 2019.

A "no-deal Brexit," it added, would also lead to a credit rating downgrade.

Disclaimer: This is unedited, unformatted feed from the Associated Press (AP) wire.

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