Article 4HYM4 Rising risk of no-deal Brexit slows UK growth as pound slides

Rising risk of no-deal Brexit slows UK growth as pound slides

by
Richard Partington
from Economics | The Guardian on (#4HYM4)

Latest Guardian analysis finds business alarmed by prospect of Boris Johnson or Jeremy Hunt leaving EU without deal

Britain's next prime minister will take charge of an economy beginning to falter, as Brexit uncertainty and the mounting risk of a no deal scenario serve as a brake on growth, according to a Guardian analysis.

As the Conservative leadership race reaches an acrimonious finale, the sugar hit for the economy from the stockpiling rush before the original Brexit deadline has run its course, with warning signs emerging that growth will flatline.

Related: How has Brexit vote affected the UK economy? June verdict

In a 'no deal' scenario, the UK would leave the single market and the customs union immediately with no 'divorce' arrangement in place. The European Court of Justice would cease to have jurisdiction over the UK, and the country would also leave various other institutions including Euratom and Europol.

Related: 'The UK is headed towards a cliff edge' - two experts on the economic outlook

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