According to the world’s leading economic think-tank, the reversing Brexit is expected to cause a positive and significant impact towards the British economy, issuing an extreme warning on the possible consequences of EU exit.
Based on the report that highlighted the weak economic growth of UK since the referendum last year, the Organisation for Economic Co-operation and Development (OECD) warned of the possible risks in establishing an essential trade deal with the European Union.
The UK economy has the tendency to hinder its progress by a disorganized Brexit, in case of a failure of Brussels negotiations. This could further push the sterling pound lower resulting in a failing credit rating in the UK. Also, it underlined the uncertainty of Britain to break up whenever Northern Ireland and Scotland consider again their fate in the EU due to Brexit.
José Ángel Gurría, the OECD secretary general, advised that increasing inflation triggered by the sluggish pound would likely stall investments and expenditure. While the government should not create new barriers within EU and UK.
On the other hand, Chancellor Philip Hammond persisted that actions from the government relative to the referendum provided necessary confidence for businesses.
At the same time, British Liberal Democrat Jo Swinson addressed that the report caused vindication to the call of her party regarding a new referendum that offers an “exit from Brexit.”
While according to Shadow Chancellor John McDonnell, the report depicted a “damning picture” about the economic management by the government coupled with the Brexit process.
Moreover, the most recent United Kingdom OECD Economic survey forecasted growth in the economy by 1% next year, this projection could get worse without free trade agreements. The EU exit exacerbates the demand to renew employment productivity growth, considering the statement from the OECD that it remained steady and failed to manage any meaningful contribution to British output since 2007. Hence, this is the weakest data outside South East England and Greater London.
The differences among regions and labourers could lead to a significant distinction between people with regards to profits and resources, work and income and skills and education.
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