2016.05.2303:06:00UTC+00Briferendum Series: Osborne Warns Year-Long Recession

UK Treasury is about to release report on short term economic shock, arising from Brexit on Monday. The report is expected to show that there will be an immediate hit to jobs and interest rates, where former will be lost and the latter will rise.

Mr. Osborne, chancellor has already said that house prices will suffer 10-18% drop, whereas Treasury is expected to show that growth will be 3.6% lower in two years, compared to stay in the Union. So UK will suffer year long recession, which will be as bad as the 90’s. Under worst case scenario, treasury has previously projected 6% hit on growth. Last month it has also warned that leave vote will be a tax for the households, in tune of £4,300 per year.

Latest poll is suggesting that in camp is a bit ahead of exit camp, whereas still around 12-15% of population remains undecided.

The exit camp has dismissed treasury’s claims and researches, saying they are biased and short-sighted and pointed out the treasury department’s poor track record of growth forecast.

Pound is currently trading at 1.453 against Dollar. Many expect it drop 15-20% in the event of Brexit.