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Without the Brexit agreement, the UK economy could collapse

British Prime Minister Theresa May on November 28 at the House of Commons in London.
British Prime Minister Theresa May on November 28 at the House of Commons in London. Jessica Taylor / AP

What will happen if the United Kingdom leaves the European Union without agreement with Brussels? The Bank of England tries to answer this question on Wednesday, November 28, and the projections are rather bleak. In its assessment of the different EU exit scenarios, the agency predicted a fall of 25% from the pound if there was no agreement with Brussels.

Read our report at Liverpool: with Brexit, "people feel like they have themselves"

The Bank of England added that in the case of this darkest scenario, UK gross domestic product (GDP) was cut from 7.8% to 10.5% in 2024, compared to going without Brexit. Another indicator: the unemployment rate will skyrocket to 7.5%, and inflation to 6.5%, while real estate prices drop by 30%.

Even in the case of maintaining close relations with the European Union, GDP will decrease between 1.2% and 3.8% in 2024, said the Bank of England, which welcomed the agreement well. Brexit was negotiated by Premier Theresa May, to be elected in the British Parliament on December 11.

Also read Brexit: what scenario if there is a denial of an agreement by the British Parliament?

There is no second referendum

"Our duty is not the best, but prepare for the worst"Bank of England Governor Mark Carney said at a press conference. Earlier that day, a government report estimated a GDP loss of 9.3% in fifteen years. The sectors most affected in the absence of an agreement are cars and chemicals, which affect more than 20% of production, determine government reports.

Articles are provided for our customers Also read Brexit: understand everything about the agreement to leave the UK from the European Union

Opponents from England left the Union immediately took the opportunity to denounce "False promises" Brexiters in the era of prosperity that will be expected to take part in the divorce set for March 29, 2019. "It wasn't until this morning that the Chancellor [le ministre des finances, Philip Hammond] finally acknowledging one thing: it would be better for us to remain in the European Union "said Labor MP Alison McGovern.

The British Prime Minister began Tuesday in Northern Ireland touring through Britain to defend Sunday's validated agreement by twenty-seven countries from the European Union. According to him, no other agreement is possible. If rejected by British deputies, Britain will face Brexit without approval. MI May also confirmed Wednesday that he did not want a new referendum on Britain's exit from the European Union.

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