Belfast Telegraph

UK economy will slow as Brexit reality bites, says OECD

By Ben Woods

The UK economy will slow in the coming years as Brexit uncertainty hampers growth and consumers endure a spending squeeze caused by higher prices and lower wages, says the Organisation for Economic Co-operation and Development (OECD).

OECD stood by its forecasts for UK gross domestic product (GDP), predicting it to slow from 1.8% to 1.6% for 2017, before dropping to 1% in 2018. It also said weaker growth could drive unemployment above 5%.

But while it expects household consumption to ease, it said consumers would also use money normally earmarked for savings to keep spending in the face of higher inflation.

It said: "Private consumption growth is projected to slow, as higher inflation holds back real earnings, but a weaker growth outlook should mitigate the extent of price pressures in the economy."

Belfast Telegraph