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No-Deal Brexit Would Put UK On Track for 'Long Recession' - Ratings Agency

© REUTERS / Eddie KeoghWorkers walk in the rain at the Canary Wharf business district in London, Britain November 11, 2013.
Workers walk in the rain at the Canary Wharf business district in London, Britain November 11, 2013. - Sputnik International
This is yet the latest warning about a hard Brexit, echoing concerns about the adverse economic effects of a no-deal scenario issued by countless other financial bodies, business leaders and politicians.

A no-deal Brexit would push the UK economy into a “long recession”, potentially lasting longer than the 2008 global financial crisis, the Standard and Poor’s rating agency has warned.

In a statement on Tuesday, financial researchers at Standard and Poor’s said the “economic loss” to GDP is likely to be permanent, also forecasting unemployment to rise to over seven percent if Britain crashes out of the European Union without a deal in place.

READ MORE: UK’s New Budget: Hammond Wants to Gamble on Public Finances – Think Tank

“Most of the economic loss of about 5.5 percent GDP over three years compared to our base case would likely be permanent.”

The research company also warned that house prices across the UK could fall by over ten percent in the two years following Brexit.

S&P Global Ratings credit analyst Paul Watters said the firm is actively researching the potential consequences of a no-deal Brexit as the likelihood of such an eventuality “has increased sufficiently to become a relevant rating consideration.”

Sadiq Khan, Britain's Labour Party candidate for Mayor of London and his wife Saadiya leave after casting their votes for the London mayoral elections at a polling station in south London Britain May 5, 2016 - Sputnik International
'People Must Get a Final Say': London Mayor Calls for Another Brexit Vote
The International Monetary Fund (IMF) and countless other organizations have issued pessimistic long-term economic forecasts for Britain due to Brexit, especially in a hard scenario.

With many Brits worried about their finances, there has been a significant drop in support for Brexit, as shown by several recent nationwide opinion polls.

Meanwhile, pro-EU campaigners have stepped up their efforts to secure a second referendum, with almost a million Brits signing The Independent’s Final Say petition, while over 700,000 protestors attended the People’s March rally in central London earlier this month.

READ MORE: UK Government Need to Keep EU Laws After Brexit to Protect Environment — Scholar

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