Danny McCance 7 Jun 2017 05:05pm

OECD predicts no deal for UK on Brexit

UK GDP growth will dip to 1% in 2018 and the country will fail to secure a favourable trade deal with the EU, the OECD has warned

It predicts that the failure to secure such a deal will mean the UK is forced to trade under World Trade Organisation (WTO) tariffs. 

The OECD Economic Outlook states that the country’s growth will “weaken slightly” in 2017 to 1.6%, and drop further to 1% the following year.

It points to a slowdown in private consumption growth as higher inflation holds back real earnings, along with an expected contraction in business investment amid the economic uncertainty.

In March, the OECD revised its growth figures for 2017 up, from 1.2%.

Last month the ONS confirmed that UK inflation is at 2.6%, it’s highest rate since 2013.

On Monday, economists at the World Bank forecast that UK GDP will grow by 1.7% in 2017, up from 1.2%, which they predicted in January.