Remember Brexit? Why Britain could really struggle to dig itself out of recession

05/22/2020

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Julia Horowitz | CNN Business

As nations around the world attempt to dig their way out of a cataclysmic global recession, Britain is in a particularly tight spot of its own making.

The country is in the middle of an economic disaster and a health crisis. The Bank of England has predicted that the United Kingdom is heading for its worst economic crash in more than 300 years, while its death toll from Covid-19 is the highest in Europe.

Yet the United Kingdom is also racing toward a self-imposed deadline to construct a post-Brexit trade agreement with the European Union, its single biggest market for exports, by the end of the year. Talks are not going well — raising the possibility of another major shock just as the expected economic recovery gains momentum.

“The whole of the advanced world is in recession because of the coronavirus,” said Kallum Pickering, senior economist at Berenberg Bank. “But the UK has an additional problem of the UK-EU negotiations in the second half of the year.”

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