London (CNN Business)Leaving the European Union later this year without a Brexit deal would plunge the United Kingdom into recession.
The UK Office of Budget Responsibility (OBR) 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%. GDP would shrink by 2% by the end of 2020.
