Brexit: S&P Slashes UK’s Growth Forecast, Says It Will ‘Barely Escape Full-Fledged Recession’
The following is an excerpt from AVANEESH PANDEY | July 4, 2016 | ibtimes.com |
The decision to leave the European Union will result in strong economic headwinds across the U.K., dragging down its growth over the next two years, S&P Global Ratings said in a report released Monday. Reeling under the impact of Brexit, the country will "barely escape a full-fledged recession," the credit rating agency warned.
"Overall, our current estimates suggest that Brexit will produce a drag amounting to 1.2 percent of GDP for the U.K. in 2017 and 1 percent in 2018. These new estimates assume that access to the single market is maintained in 2017 and 2018, and that the BoE succeeds in keeping turmoil in financial markets in check," S&P said in its report.
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