With regard to the slowdown of the British economy since the referendum in June 2016 on the country's withdrawal from the EU (Brexit), the OECD encourages the United Kingdom to maintain close economic ties with the EU and to implement measures to reinforce productivity and thereby preserve the standard of living of its population, in a report published on Tuesday 17 October.
Stressing the rise in uncertainty and a number of risks since the Brexit vote, particularly highlighting the blow dealt to household purchasing power by the rise in inflation, drop in savings rate and falling migration balance, the OECD presents a number of possible options to meet the challenges related to Brexit and reinforce the dynamism and inclusivity of the British economy going forward.
Its report identifies priorities for action, such as new budgetary initiatives conducive to productivity increases and global reforms aiming to reinforce the economic results of the regions that are lagging behind the rest of the country.
“The United Kingdom is facing challenging times, with Brexit creating serious economic uncertainties that could stifle growth for years to come. Maintaining the closest economic relationship with the European Union will be absolutely key, for the trade of goods and services as well as the movement of labour”, warns OECD Secretary General Angel Gerria.
“Macroeconomic and fiscal policy can and should continue being used to support the economy, both during and after the exit negotiations. Future prosperity will depend on new reforms to improve job quality, boost labour productivity and ensure that the benefits are shared by all”, the organisation adds.
According to the report, continued economic progress will depend on the success of negotiations with the EU and forthcoming talks with non-EU countries.
A summary of the main conclusions of this report is available at: https://goo.gl/bPeBt6 . (Original version in French by Emmanuel Hagry)