OECD slashes British growth forecast over Brexit

AFP, PARIS: Britain is poised to take a major hit next year from its momentous decision to leave the European Union, the OECD said yesterday, halving its growth forecasts for the world’s fifth-biggest economy.
The British economy will grow by 1.0 per cent in 2017, said the Organisation for Economic Cooperation and Development as it published revised forecasts.
In its earlier forecasts in June, before the referendum, it had projected the economy would grow by 2.0 per cent.
Growth in 2017 is likely to be “well below the pace in recent years and forecasts prior to the referendum,” the OECD said.
In addition, “uncertainty about the future path of policy and the reaction of the economy remains very high and risks remain to the downside.”
The weaker outlook for Britain, the second-biggest economy in the European Union, will also push down global output, which is stuck in a “low-growth trap,” the organisation warned.
Global growth is seen at 2.9 per cent this year, rising to 3.2 per cent in 2017, the OECD said, trimming both forecasts by 0.1 per centage points.

OECD slashes British growth forecast over Brexit

AFP, PARIS: Britain is poised to take a major hit next year from its momentous decision to leave the European Union, the OECD said yesterday, halving its growth forecasts for the worlds fifth-biggest economy. The British economy will grow by 1.0 per cent in 2017, said the Organisation for Economic Cooperation and Development as it published revised forecasts. In its earlier forecastsin June, before the referendum, it had projected the economy would grow by2.0 per cent. Growth in 2017 is likely to be well below the pace in recent years and forecasts prior to the referendum, the OECD said. In addition, uncertainty about the future path of policy and the reaction of the economy remains veryhigh and risks remain to the downside. The weaker outlook for Britain, the second-biggest economy in the European Union, will also push down global output, which is stuck in a low-growth trap, the organisation warned. Global growth is seen at 2.9 per cent this year, rising to 3.2 per cent in 2017, theOECD said, trimming both forecasts by 0.1 per centage points.