Brexit is the biggest threat to the British economy

Warning by International Monetary Fund

IMF Brexit_AFP“After the referendum on 23rd June, if UK takes a decision of getting out from the European Union then it will be the biggest threat to the British economy” warned International Monetary Fund. A report on ‘Brexit’ by Bank of England also states, “Country will face the danger of recession because of Brexit”. The warning of Bank of England followed by a similar warning from IMF and that too within 24 hours from each other has made these warnings worth noting.

The building of public opinion towards ‘Brexit’ before the 23rd June referendum has already created an environment of uncertainty. The percentage of investments and jobs too has fallen down. With some surveys it has been found that for the past 3 years UK’s economic and industrial activities are at their lowest. If UK decides to step-out from the EU then this would further increase the uncertainty. There would be chaos in the market and production will take a big hit. Further, International Monetary Fund expressed serious concern saying that UK will have to establish economic as well as trade relations with EU in a completely new paradigm in case of Brexit.

IMF has also warned that London’s identity as the financial nerve centre would get wiped-off. UK’s Chancellor of the Exchequer, George Osborne has also sided with the warnings given by International Monetary Fund. A few days back UK’s Prime Minister, David Cameron had warned that if UK steps out of the European Union then it will be left insecure. Cameron had also said that Brexit would risk not only UK’s security but also financial future.