A no deal Brexit would lead to a recession worse than the 2008 global financial crisis, this is according to Mark Carney the governor of Bank of England. England economy will shrink up to 8 percent if there is no transition period after England leaves the European Union. The bank of England also warned that the house prices would decrease by 30 percent, there would be an increase in unemployment by 7.5 percent and also the pound would fall by a quarter. The bank of England governor said all this are Scenarios and forecast.
Prime Minister Theresa May is working hard to convince the MP to back her withdraw agreement which was agreed on in Brussels. Britain and the European Union agreed on a deal for the smooth United Kingdom exit in March but some of the members of parliament are threatening to derail the deal. The parliament is expected to vote on the deal on December 11 and if the deal is not voted for then England will be in a tough spot with no transition and then European Union exit.
Mark Carney said that the country is not ready for a no deal Brexit. He also country needs more time because the country lacks a contingency plan and knowledge on how to deal with customs declarations. He said in the worst-case scenario if England leaves the European Union without a deal, the economy would shrink between 1.35% to 3.75%. The governor of the bank of England said that his statement was not to make the people of England afraid but to know the actual facts.