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 say.
"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 on Sunday.
They expect the victorious "leave" outcome in the June 23 referendum to chop a cumulative 2.75 per cent off UK gross domestic product in the next 18 months.
They also expect knock-on effects in the US and European economies.
Goldman now expects eurozone GDP over the next two years to average 1.25 per cent versus 1.5 per cent before the Brexit vote.