‘Hard’ Brexit Weigh Against UK Economic Performance

The British economy is projected to slow down this 2017 and the following year as it was inundated by diverging issues caused by Brexit negotiations.

The Organisation for Economic Cooperation and Development (OECD), said that risks and expected results of the referendum would likely hurt private consumption.

According to forecasts, UK economic growth is 1.6 percent for this year while predicted to gain one percent in 2018 with a steady outlook versus estimated figures in March.

Moreover, OECD presented their prediction for other economies in 2018 showing positive growth and set out a constant projection for the United Kingdom.

The organization assumes for a hard Brexit thinking that Britain is going to trade against a much restrictive term under the World Trade Organisation upon leaving the European Union in 2019, in case that it fails to obtain an all-inclusive free trade agreement.

The most recent OECD’s world economic outlook indicates slower growth which could drive jobless rate higher than five percent. Nonetheless, the intergovernmental entity told that  "swift progress in negotiations and an outcome that retains strong trade linkages with the European Union would lead to better outcomes than projected".