OECD downgrades UK's Growth Forecast making it the weakest of the G7 countries
The OECD’s forecast for 2018 and 2019 is well below the downgraded estimate issued by the Office for Budget Responsibility alongside chancellor Philip Hammond’s Budget last week, and highlights how the organisation believes Brexit will weigh heavily on Britain’s economic performance.
The OECD's report published in September put Britain at just 1% in 2019, the rise is attributed to the interim deal that is currently being negotiated. In today's report, Britain leaving the EU is described as a significant risk for economic prospects in Germany, Ireland, Latvia, the Netherlands, South Africa and Spain.
Figures for the global growth in the OECD report are 3.6% this year and 3.7% in 2018, putting the UK well behind the global level led by China and India.
José Angel Gurría, the OECD general secretary, said: “Growth has picked up momentum and the short-term outlook is positive, but there are still clear weaknesses and vulnerabilities.
“There is a need to focus structural and fiscal action on boosting long-term potential as monetary policy support is reduced. Countries should implement reform packages that catalyse the private sector to promote productivity, higher wages and more inclusive growth.”