UK could face recession in case of ‘hard Brexit’ – Allianz’s El-Erian
|Mohamed El-Erian, Chief Economic Adviser at Allianz, suggested that the UK could slip back into recession if a ‘hard Brexit’ case materializes, adding “If you have a hard Brexit tomorrow, you’ll be replacing something with nothing”.
El-Erian, however, believes the chances favour a ‘soft Brexit’, as both the UK and the European Union could be better off on such a scenario.
“At the end of the day Europe is going to realise that it’s in its interest as well as the UK interests to have a soft Brexit, because Europe also needs the UK”, El-Erian concluded.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.