The richest countries in the world have this week collectively advised Britain to reverse Brexit or risk destroying its economy.
The Organisation for Economic Co-operation and Development (OECD), an intergovernmental economic organisation made up of 36 member countries, made the explosive suggestion of a further referendum to reverse Brexit after a report warned of severe consequences following the divorce.
Its analysis suggests a “no-deal” Brexit would wipe up to a staggering £40 billion off UK economic growth by 2019, with economic growth likely to be 1.5 per cent slower if the country crashes out of the EU without a trade deal or a transition deal with the bloc in March 2019.
Crucially, the OECD now see a hard Brexit with a break down in trade talks as the default position, which means tariffs on imports and exports between the EU and UK are almost inevitable.
Wes Streeting, a Labour MP and supporter of the Open Britain group, said: “Today’s OECD analysis should be the final nail in the coffin for the already long-buried notion that Brexit will benefit our economy.
“A hard Brexit or walking away without a deal would wreak even more punishment on the UK economy.
“The Government can avoid this if they drop their ideological and self-imposed red lines and start negotiating for continued membership of both the single market and the customs union.”
The OECD admitted that Brexit negotiations were difficult to forecast, and could “prove more favourable” than assumed in its report – boosting trade, investment and growth.
But it warned the very real threat of no deal would spark a sharp reaction by financial markets, sending the exchange rate to new lows and leading to a downgrade in the UK’s sovereign rating.
“Business investment would seize up, and heightened price pressures would choke off private consumption,” the report said.
RELATED
Australian analysis of a post-Brexit trade deal with Britain does not look good
Since you are here
Since you are here, we wanted to ask for your help.
Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.
Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.
If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.
To donate or subscribe to The London Economic, click here.
The TLE shop is also now open, with all profits going to supporting our work.
The shop can be found here.
You can also SUBSCRIBE TO OUR NEWSLETTER .
