Brexit could hit UK GDP by as much as 3% by 2020, the international economic body has claimed
BRITISH HOUSEHOLDS could be hit with an additional ‘Brexit tax’ which could be as much as £5,000 per household by 2020, the leader of the OECD has claimed.
Presenting the organisation’s findings at the London School of Economics, Angel Gurría, OECD secretary-general warned of the potential effects of the UK leaving the European Union, including a drop in national confidence and a 3% slump in GDP.
Discussing the findings of the organisation’s latest report, entitled The Economic Consequences of Brexit: A Taxing Decision, Gurría said: “Leaving Europe would impose a Brexit tax on generations to come. Instead of funding public services, this tax would be a pure deadweight loss, with no economic benefit”.
The OECD also said the UK would suffer from losing ‘unrestricted access’ to the single market, as well as facing barriers when dealing in third-world countries.
“A decision by Britain to leave the European Union would cause a severe negative shock to the economy and weaken GDP growth for many years, equivalent to a cost per household of £3,200 per year by 2030 at today’s prices, and as much as £5,000 in the worst case scenario,” added the OECD.