‘Significant shock’ from Brexit

THE pound would plunge by 20 per cent and economic growth would slow by nearly a third following a Brexit vote next month, an economic think tank claims.

The National Institute of Economic and Social Research said it would be “a significant shock” to the UK economy, with GDP growth dropping to 1.9 per cent in 2017 compared with 2.7 per cent following a Remain. A drop in sterling would drive inflationary pressure, with “higher import prices feeding through into higher prices for households”.

It added: “Reductions in trade and foreign direct investment would represent more permanent structural changes to the UK economy, and would have important long-run implications.”