MOSCOW (Sputnik) — The analysis, launched on Monday by UK Prime Minister David Cameron and Chancellor George Osborne, contained a stark warning of a 3.6 percent reduction of the country's GDP within one year, with GDP per household shrinking by 4,300 pounds ($6,250) after 15 years of independence from the European Union in case of a "shock scenario."
"500,000 UK jobs would be lost and the value of the pound would fall by around 12%. Inflation would also increase by over 2 percentage points and the value of people’s homes would be hit by 10% compared to Britain remaining in the EU, with a rise in uncertainty from current levels similar to that experienced in the UK during the early 1990s recession," the Treasury said in a statement accompanying the release of a new analysis with a short-term outlook for Britain in case it votes to leave the 28-nation bloc at the June 23 referendum.
"This analysis shows the stark choice facing the British people <…> Even in its more cautious estimate, the Treasury finds that a vote to leave the EU would cause an economic shock that would tip Britain into recession and cost at least half a million jobs," Cameron was quoted as saying by the Treasury.
UK citizens are set to vote on June 23 in a referendum on the country's EU membership, after Cameron and the leaders of the 27 other EU member states reached a deal in February to grant the United Kingdom a special status within the bloc.