A no-deal departure could result in the UK’s GDP falling by more than 3% over two years, according to ratings agency Fitch.
The agency said that weaker growth prospects would carry through to the public finances, “either through the impact of automatic stabilisers or due to looser fiscal policy to address the shock to the economy of a no-deal scenario”.
Fitch said that last week’s spending review, “underscores our view that austerity fatigue and Brexit have increased uncertainty about the outlook for public finances”.
