LONDON 18 Jul (ANA) - The UK government’s budget watchdog has warned a no-deal Brexit will plunge the country into recession. 

The British economy is predicted to contract by 2% in real terms by the end of 2020, taking Britain into recession and leaving real GDP 4% smaller than its previous March forecast.

The Office for Budget Responsiblity (OBR) warns: “Heightened uncertainty and declining confidencedeter investment, while higher trade barriers with the EU weigh on exports. 

“Together, these push the economy into recession, with asset prices and the pound falling sharply. Real GDP falls by 2% by the end of 2020 and is 4% below our March forecast by that point.”

The forecast is the latest in a long line of warnings from experts and businesses about the potentially devastating consequences of a no-deal Brexit, but it is from one of the most authoritative voices yet on the issue.(ANA)

FA/ANA/18 July 2019------