OECD ups economic forecast for 2016 but next year isn’t so good

oecdThe experts at the OECD have back tracked on their predictions of doom for the UK economy for 2016. They’ve changed their mind about a likely recession and upped their GDP growth forecast from 1.75 to 1.8%.

Mainly due to the slowing China economy, the OEC also downgraded global GDP expectations for this year from a forecast of 3% to to 2.9% so the UK is bucking the trend.

However all may not be rosy for the UK, the OECD have knocked the growth forecast for 2017 from 2% to 1% saying that the negative effects of the BREXIT vote haven’t vanished, they’ve simply been delayed.

The Chancellor Philip Hammond said “While I recognise that there may be some difficult times ahead, I am confident that we have the tools necessary to support the economy as we adjust to a new relationship with the EU and take advantage of the opportunities that it offers“.

I think it’s fair to say that even the most optimistic leave campaigners didn’t expect the UK economy to be quite as resilient in the short term as has been the case. Equally the doom mongers of the remain campaign can’t be totally dismissed… there’s likely to be plenty of uncertainty as BREXIT negotiations get under way which will impact the economy negatively over the next couple of years.