Brexit shock will cause severe unemployment, recession: UK Treasury

London

WITHIN weeks of an exit from the European Union (EU), the British economy would slide into an inflationary recession with unemployment rising by at least 500,000, the UK Treasury has predicted.

Previously the Treasury projected poor economic performance in the long term, but the latest analysis forecasts "economic shock scenarios" in the event of Brexit. Unveiling the latest analysis, George Osborne, UK Chancellor of the Exchequer, said that the latest Treasury study focused on the immediate economic impact if voters chose to exit the union in the June 23 referendum.