You are here: Home - Investing - Experienced Investor - News -

UK may already be in recession

Written by:
The Brexit deadline isn’t until the end of October - but the UK could already be in a technical recession, a leading think tank has warned.

The National Institute of Economic and Social Research (NIESR) said there is around a one in four chance that the economy is in a technical recession, which is defined as two consecutive quarters of negative economic growth.

If a no-deal Brexit is avoided, the UK economy is forecast to grow at around 1 per cent in 2019 and 2020 as uncertainty holds back investment and productivity growth remains weak.

In an orderly no-deal scenario, the economy is expected to stagnate, before starting to grow again in 2021.

However, a disorderly no-deal Brexit could lead to a “severe downturn”.

“The outlook beyond October, when the United Kingdom is due to leave the European Union, is very murky indeed with the possibility of a severe downturn in the event of a disorderly no-deal Brexit,” NIESR said.

Boris Johnson, the current front-runner to replace Theresa May as UK prime minister this week, has vowed to ensure Brexit happens by the 31 October deadline.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week