Sunday, October 25, 2020
ADVT 
International

UK Would Enter Recession In Case Of No-deal Brexit: Watchdog

Darpan News Desk IANS, 18 Jul, 2019

    The UK's economy would slide into recession in 2020 if it leaves the EU without a deal, according to a report by the country's fiscal watchdog on Thursday.


    The Office for Budget Responsibility (OBR), which provides independent economic advice to the British government, said the economy would lose two per cent in gross domestic product if the UK pulled out of the EU on October 31 without first securing a future agreement.


    Both Conservative Party leadership candidates, Boris Johnson and Jeremy Hunt, have kept the no-deal Brexit option on the table.


    "Heightened uncertainty and declining confidence deter investment, while higher trade barriers with the EU weigh on exports," said the OBR's report on its no-deal Brexit stress test.


    "Together, these push the economy into recession, with asset prices and the pound falling sharply."


    "Real GDP falls by 2 per cent by the end of 2020 and is 4 per cent below our March forecast by that point," according to the report cited by Efe news.


    Such a scenario would push borrowing up to 30 billion pounds a year and would add 12 per cent GDP to net debt by 2023-24, both projected figures being higher than initially forecast in a report in March.


    A no-deal scenario would raise trade barriers and prompt a fall in inward migration and productivity output.


    "The imposition of tariffs and the sterling depreciation raise inflation and squeeze real household incomes, but the Monetary Policy Committee is able to cut Bank Rate to support demand," the report said.


    It added that the Bank of England could think about lowering interest rates to counter inflation.


    The UK had originally been slated to leave the bloc on March 29 but the process was delayed as the outgoing Prime Minister Theresa May failed to get backing for her withdrawal deal.


    She is due to be replaced by one of the two leadership contenders by the end of the month.


    Whoever takes over the Conservative Party and the office of Prime Minister will have to immediately tackle the issue of withdrawing from the EU. Brussels has until now stood firm that it would not compromise on the withdrawal deal.


    The EU's top Brexit negotiator Michel Barnier said the UK would have to "face the consequences" if it decides to quit the bloc without an agreement.


    He told the BBC that May's Brexit policy, which failed to make it through parliament three times, was the only way to ensure a smooth departure.


    May faced backlash from members of her party who thought her withdrawal deal offered too many concessions to the EU.

    MORE International ARTICLES

    Afghan Peace Talks: Taliban Agrees To Reduce Violence

    The participants from Kabul from politicians, civil society members, and government officials. They attended the intra-Afghan talks with their personal capacity.

    Afghan Peace Talks: Taliban Agrees To Reduce Violence

    US Congress To Vote On Bill To Remove Country-Cap On Green Card Will Benefit High-Tech

    US Congress To Vote On Bill To Remove Country-Cap On Green Card Will Benefit High-Tech

    The US House of Representative will vote on Tuesday on a legislation that seeks to lift the country-cap on issuing green cards.

    US Congress To Vote On Bill To Remove Country-Cap On Green Card Will Benefit High-Tech

    Pakistani Turns India Fan After Being Denied Entry Into Team Hotel

    Speaking to IANS, Muhammad said it was on the eve of the game between India and Pakistan in Manchester during the group stages of the showpiece event that he became a fan of this Indian team.

    Pakistani Turns India Fan After Being Denied Entry Into Team Hotel

    ‘No Longer Acceptable’: Donald Trump Reignites Tariff Issue With India

    ‘No Longer Acceptable’: Donald Trump Reignites Tariff Issue With India

    "India has long had a field day putting Tariffs on American products. No longer acceptable!" Trump tweeted. 

     

    ‘No Longer Acceptable’: Donald Trump Reignites Tariff Issue With India

    UK-Based Indian Businessman Sues Wife Over Son From Another Man

    A ruling by a British judge has revealed that an Indian origin man, the son of a London-based arms dealer, is suing his estranged wife after learning that he is not the father of their eight-year-old son.

    UK-Based Indian Businessman Sues Wife Over Son From Another Man

    Kamala Harris' Campaign Raises $12M In 2nd Quarter

    US Senator Kamala Harris, riding a wave of support after her performance in the first presidential debate, raised nearly $12 million in the second quarter of the year which ended on June 30, her campaign has announced.

    Kamala Harris' Campaign Raises $12M In 2nd Quarter