EU referendum: People expect economic conditions to worsen immediately after Brexit vote, but with longer term gains, according to new poll


Many independent bodies have predicted an economic shock as a result of Brexit (Source: Getty)

While Britons expect a short term economic loss from a Brexit vote, they are optimistic about longer term economic conditions, according to new research.

Polling conducted by FTI Consulting found that the majority of people (68 per cent) expect worse economic conditions immediately after a Brexit, with 61 per cent still feeling the state of the economy will be worse after one year.

However, after two years just 52 per cent think economic conditions will be worse and after five 59 per cent think they will be better.

Read more: At the close: Remain relief rally starts early as FTSE 100 climbs ahead of Brexit vote

Much further on, a decade after, 65 per cent of the 1030 respondents thought economic conditions will be better, with 66 agreeing after 15 years.

"Should there be a Brexit vote, most people clearly believe that there would be poor economic conditions for some time. However, as time goes on, there is confidence amongst people that the economy would recover," said Dan Healy, managing director and head of research at FTI Consulting.

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Economists from an array of institutions including the International Monetary Fund, World Bank and Treasury has speculated there would be a short-term economic shock after Brexit vote, and possibly a recession.

In a note to clients this morning UBS caution the FTSE 100 could slip under 5,000 points post Brexit, though could rise to up 6,800 if the country votes to remain.

Tags: Brexit