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Finance Minister George Osborne stated that Britain would suffer losing at least half a million jobs within two years should the nation vote to leave the European Union.

Unemployment, real wages and house prices would all sink and eventually a recession will follow as a result of government borrowing increasing. Brexit will set off a “severe” economic shock, and the Treasury has warned that Britain will face a recession as deep as it did in the early 1990s.

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The recession would hit the lowest income families the hardest; it is Britain’s working people who will suffer, according to the finance minister.

Osborne also mentioned workers’ earnings, when adjusted for inflation, would be nearly 3% down in two years’ time. This is equivalent to a pay cut worth almost 800 pounds a year for an individual working full time on the average wage.

The Chancellor also cautioned that GDP could slide 6% lower and house prices by 18% after Brexit and deficit will hit £39 billion.

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Another effect of the Brexit would be a weakening in the value of the pound that would eventually push up inflation sharply. The Treasury said that the value will decline by 15%.

As Osborne was speaking, the finance ministry issued a new report on the short-term repercussions of an “Out” vote.

Britain has exactly one month to go until it holds its European Union membership referendum.

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