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OECD forecast indictment of disastrous government policy

November 28, 2017 12:05 PM
Originally published by UK Liberal Democrats

The OECD's latest economic forecast shows the UK bucking the trend, and not in a good way.

While the global economy is expected to gain momentum next year, growth in the UK will slow further because of Brexit-related uncertainty, which will drive investment down and businesses abroad.

The OECD is particularly worried about the 'major financial stability risk' of high household debt, which is approaching pre-crisis levels.

These economic forecasts are even less flattering than those published by the OBR last week, which saw the UK's future growth downgraded by tens of billions of pounds.

These figures assume that the UK will agree to a transition period with the EU, an outcome that is looking far from certain due to the government's disastrous negotiating strategy.

As the Bank of England points out, a no-deal Brexit would mean a severe recession and a doubling of unemployment, rather than just a slowdown in growth.

To boost growth, the OECD recommends that the UK and the EU maintain the 'closest possible economic relationship'.

As the government just isn't really pushing for that, the public should be offered an exit from Brexit.