UK could face recession in case of ‘hard Brexit’ – Allianz’s El-Erian

Mohamed El-Erian, Chief Economic Adviser at Allianz, suggested that the UK could slip back into recession if a ‘hard Brexit’ case materializes, adding “If you have a hard Brexit tomorrow, you’ll be replacing something with nothing”.

El-Erian, however, believes the chances favour a ‘soft Brexit’, as both the UK and the European Union could be better off on such a scenario.

“At the end of the day Europe is going to realise that it’s in its interest as well as the UK interests to have a soft Brexit, because Europe also needs the UK”, El-Erian concluded.