There is a near 50pc chance Britain will vote to leave the EU this year, a decision that would inflict "significant economic damage" on the UK over the next decade, a leading investment bank has warned, reports .

Analysts at Société Générale are placing 45pc probability on 'Leave' winning out in a referendum on Britain's EU membership, set to take place this year.

A decision in favour of Brexit would condemn the economy to at least 10 years of lower growth, wiping 0.5pc-1pc off annual GDP until 2026, said the French bank.

Although no formal date for the in/out referendum has been announced, a vote could take place as early as the summer following the conclusion of negotiations with Brussels in February, said Soc Gen.

"Financial markets seem to have taken little notice of this event," said Patrick Legland, head of global research at the bank.

"There is a high risk that the UK could vote to leave the European Union with significant economic damages resulting from such a risk scenario," said Mr Legland.

bbabo.Net