The UK Office of Budget Responsibility warned Thursday that “heightened uncertainty and declining confidence” would deter investment while higher trade barriers would slam exports.
“These push the economy into recession, with asset prices and the pound falling sharply,” said the government’s budget watchdog. UK stock markets would fall 5%, while the pound would plummet 10%.
The United Kingdom could be headed for a messy departure from the European Union on October 31.
Boris Johnson, the frontrunner to succeed Theresa May as prime minister next week, has said that he’d be willing to force Brexit on that date without a deal that protects trade.
This is a developing story.