OECD: Brexit will wipe £40 billion off British growth

OECD: Brexit will wipe £40 billion off British growth

The “no-deal” Brexit that is now on the cards would wipe up to £40 billion off UK economic growth by 2019, according to the Organisation for Economic Development (OECD). In its September economic forecast summary it said the threat of no deal would spark a sharp reaction by financial markets, sending the exchange rate to new lows and leading to a downgrade in the UK’s sovereign rating.

“Business investment would seize up, and heightened price pressures would choke off private consumption,” the report said.“The current account deficit could be harder to finance, although its size would likely be reduced.”

There is a way out of all this, of course: “In case Brexit gets reversed by political decision (change of majority, new referendum, etc), the positive impact on growth would be significant,” the OECD said.

 

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