TWO seasoned observers of the economy have warned that Britain could be in for a rocky period if it votes to leave the EU.

Blue Sky Financial Planning hosted an event with Alex Dryden, market analyst with JPMorgan Asset Management, and Justin Urquhart Stewart, a familiar face on TV and director of Seven Investment Management.

Mr Dryden said the issues over EU membership were complex and that leaving would be a journey into the unknown.

He predicted a period of extreme uncertainty and real danger if the public voted for ‘Brexit’, pointing out that the pound had fallen against most major currencies and by 12.6 per cent against the euro since the beginning of December.

But he said the costs of UK exports could be more attractive to other countries. “It's unlikely we will wither on the vine but we are likely to endure two to three years of pain. Negotiating our exit will be very difficult,” he said.

Mr Urquhart Stewart said the current uncertainty meant investors were waiting on the sidelines, which was likely to mean a short-term slowdown in growth.

“We have a lot to be proud of here in the UK. We are not doomed. We are the world’s fifth largest economy. We are the eighth biggest country for manufacturing and the tenth largest exporter,” he said.

He said Brexit would be a challenge to the UK, but in the medium term the country could bounce back stronger than it had been before.

Gary Neild, MD of Blue Sky Financial Planning and the chair of its investment committee, said he was looking to decrease the risk across its portfolios in anticipation of volatility ahead of the vote.

“It is a privilege to look after our clients’ money and, wherever possible, we seek to protect capital in times of uncertainty,” he said.

Mr Urquhart Stewart and Mr Neild both believed Britain should remain in the EU but said they understood both sides and their remit was to act in clients’ interests whatever happened.

Both speakers said we were living in a world of lower, slower growth, but with reasons for optimism.

Mr Urquhart Stewart said: “We still don’t know whether the quantitative easing programme is working and we are not likely to know for probably another 10 years.”

He added: “We are in a different place to 2008 but that doesn’t mean there aren’t challenges ahead.”