12:16 GMT18 May 2021
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    The United Kingdom could face a year-long recession, losing some 500,000 jobs, facing rising inflation and falling property prices if the country's voters choose leaving the European Union in the upcoming Brexit referendum, the UK Treasury said Monday.

    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.

    A "severe shock scenario" outlined by the Treasury warns of some 800,000 jobs being lost and a 6 percent fall in GDP within one year.

    "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.

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    Tags:
    EU membership, Brexit, European Union, UK Treasury, George Osborne, David Cameron, United Kingdom
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