IMF says no-deal Brexit risks two-year recession for UK

World Economic Outlook refers to 'large, long-lasting negative impacts' on Britain and EU

• Analysis: IMF faces a sea of troubles

Britain's already struggling economy would be pushed into a two-year recession by a no-deal Brexit, the International Monetary Fund has warned.

Ahead of Theresa May's plea to EU leaders for a further delay to Britain's departure, the IMF used a downbeat half-yearly assessment of the global economy to predict that the UK economy could be 3.5% smaller than expected by 2021 if trade barriers were swiftly erected.