The latest forecast issued by the Organization for Economic Cooperation and Development on December 1 shows that due to the dual impact of Coronavirus and Brexit, the UK’s GDP will shrink by 11.2% this year, and will still be more than 6% lower than the level before the epidemic by the end of next year . With the exception of Argentina, Portugal and Israel, the United Kingdom is expected to be one of the countries facing the worst economic recession among all advanced economies.
The OECD stated that the risks of the future relationship between the UK and the EU have exacerbated the economic uncertainty caused by the coronavirus. The organization’s forecast is based on the UK’s future relationship negotiations with the EU, and said, “As the UK leaves the EU single market, the two sides engage in trade under a brand-new free trade agreement. The outlet creates pressure”.
The OECD added: “If the UK fails to reach a trade agreement with the EU before the end of 2020, it will bring serious additional economic turmoil to the UK in the short term. In the long run, it will affect UK trade, productivity and employment opportunities. Have a serious negative impact.”