Goldman Sachs now expects UK recession

Britain is likely to enter a recession within the year as a result of last week's vote to leave the European Union, a decision that will stunt global economic growth as well, Goldman Sachs' top economists said on Sunday.

"We now expect the (British) economy to enter a mild recession by early 2017," Goldman economist Jan Hatzius and Sven Jari Stehn wrote in a note for clients.

Reuters reports that they expect the victorious "leave" outcome in the June 23 referendum to chop a cumulative 2.75% off UK gross domestic product in the next 18 months.

They also expect knock-on effects in the U.S. and European economies.

Goldman now expects eurozone GDP over the next two years to average 1.25% versus 1.5% before the Brexit vote.

To access the complete Reuters article hit the link below:

Goldman sees post-Brexit UK recession; cuts EU, U.S. growth views

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