Standard and Poor Says - No Deal BREXIT Spells Prospects of a Long Recession

Standard & Poor's has said the likelihood of a no-deal Brexit has risen and crashing out of the EU without a deal will spark a long recession. 

The ratings agency cites stalemate on the Irish border issue as the difficult stumbling block to overcome. It said its forecast “reflects the inability thus far of the UK and EU to reach agreement on the Northern Irish border issue, the critical outstanding component of the Withdrawal Treaty”. 

Leaving the EU with no deal in place would trigger a “moderate recession lasting four to five quarters”. After this period the UK would return to growth, but at a slower pace than before. 

Image: Standard and Poor's credit rating agency.

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