No-deal Brexit will cut 3% off UK economic growth, warns OECD

Group forecasts 2020 recession just as global economy starts downward trend

A no-deal Brexit will slice almost 3% from Britain’s economic growth over the next three years compared with just 0.6% from the rest of the EU, according to the OECD’s latest health check of the global economy.

Amid concerns that all developed countries will experience slower growth next year, the Paris-based club for the world’s 35 richest states warned that the UK would take the biggest hit if the government failed to secure an agreement with the EU.

OECD analysis estimates that losing unfettered access to EU markets after 31 October will probably plunge the UK into a recession next year. The loss of trade, investment and technical knowledge plus a further fall in the pound will prolong Britain’s low rate of growth until at least 2022.