Bad news for the UK economy: the OECD forecasts a slowdown for 2018 and 2019

The UK will start to feel the Brexit’s effects very soon. An OECD’s report has outlined a sharp decline in Britain’s gross domestic product (GDP) growth: in 2018 the growth is set to 1.2% and 1.1% in 2019.

The “uncertainty over the outcome of negotiations around the decision to leave the European Union and the impact of higher inflation on household purchasing power”, is the reason for this slowdown, as reported the institute.

The economic think tank also warned against further rate rises from the Bank of England (BoE). “Monetary and fiscal policies need to remain accommodative. Inflation has risen to 3%, but in the absence of wage pressures the central bank should look through the temporary inflationary impact of currency depreciation,” it is written in the OECD’s report.

This is a sign that Britain could not achieve growth without investment in technology and infrastructure, as stressed by BDO tax partner Paul Falvey.

The UK decided to leave the European Union in the summer 2016, after an historic referendum which divided the country. The real effects of Brexit on the whole Europe and on the UK itself are still unknown.

About The Business Globalist

The Business Globalist is an independent source of information founded by Raffaele Del Gatto, former HR manager and World Editor of International Business Times Italy (Newsweek media group).

The Business Globalist doesn't have preferences regard any political party, government, institution or enterprise. Our organization promotes freedom of speech and expression at any level , and strongly believes in open source and freedom as core Internet values.

One Reply to “Bad news for the UK economy: the OECD forecasts a slowdown for 2018 and 2019”

Leave a Reply

Your email address will not be published. Required fields are marked *