Without agreement on Brexit, the British economy would collapse according to the Bank of England

What would happen if the United Kingdom leaves the European Union without agreement with Brussels? The Bank of England tried to answer this question on Wednesday, November 28, and the projections are rather bleak. In its assessment of the different exit scenarios of the EU, the institution foresees a collapse of 25% of the pound if there is no agreement with Brussels.

The Bank of England adds that in the case of this darkest scenario, British gross domestic product (GDP) is slashed from 7.8% to 10.5% by 2024, compared to would have been without Brexit. Other indicators: the unemployment rate would skyrocket to 7.5%, as well as inflation to 6.5%, while real estate prices plunge by 30%.

Even in the case of maintaining a close relationship with the EU, GDP would be reduced between 1.2% and 3.8% by 2024, says the Bank of England, which welcomed the agreement rather favorably. Brexit negotiated by Premier Theresa May, to be voted in the UK Parliament on December 11th.

No second referendum

"Our job is not to hope for the best, but to prepare for the worst"Bank of England Governor Mark Carney told a news conference. Earlier in the day, a government report estimated the loss of GDP at 9.3% in fifteen years. The sectors most affected in case of absence of agreement would be the automobile and the chemistry, affecting more than 20% of the production, specifies the governmental report.

Opponents of the United Kingdom exit from the Union immediately seized the opportunity to denounce "False promises" Brexiters on the era of prosperity that would be expected to follow the divorce set for March 29, 2019. "It was not until this morning that the Chancellor [le ministre des finances, Philip Hammond] finally admit one thing: it would be better for us to stay in the EU "said Labor MP Alison McGovern.

The British Prime Minister began Tuesday in Northern Ireland a tour through the United Kingdom to defend the agreement validated Sunday by the twenty-seven countries of the European Union. According to her, there is no other possible agreement. If it is rejected by the British deputies, the United Kingdom will face a Brexit without agreement. M^me May also confirmed Wednesday that she did not want a new referendum on the UK's exit from the EU.