Brexit Reality Bites

Britain's economy could be headed into recession in the next few years, according to advisers to the world's biggest bond fund, as growth slows and inflation surges ahead of the country's exit negotiations with the European Union.

PIMCO's Global Advisory Board said Thursday that while the U.K. economy was "holding up well" in the wake of last year's vote to leave the EU, Brexit risks, slowing immigration and high levels of household debt could push it into recession if key changes to aren't addressed by the current government.

"The risk of a U.K. recession during the secular horizon appears high, especially if the economy is unable to rebalance away from household debt and consumption to exports, and also rebalance exports away from mainland Europe to the rest of the world," the board said in a statement on the PIMCO website.

This article was written by a staff member of TheStreet.