OECD predicts slowdown in economic growth

The Organisation for Economic Co-operation and Development (OECD) has revealed a somewhat gloomy outlook for the British economy up to 2019, predicting that UK economic growth will slow down to 1.1%.

Brexit was not blamed by the OECD for the slowdown, but the organisation presumes that there will be a transition period after Britain leaves the European Union in 2019 and this will have an adverse economic effect. The OECD slow growth forecast is based on low productivity, inflation, the weak pound and consumer debt.

Wage growth is less than inflation. In the short term, the OECD expects that this will cause more consumers to dip into their savings, bolstering consumer spending for a while. In the long term, however, consumer spending may slow down.

The slowdown in economic growth is not confined to the UK, however, with the OECD expecting growth to increase only marginally in most world countries.

Financial experts have stressed that the OECD forecast may not be accurate. As Samuel Tombs of Pantheon Economics said:

“Forecasting for the UK economy in 2019 really is complete guesswork.”

If more British businesses invest in expansion, the actual growth of the UK economy could higher than the OECD predicts.

Individuals can achieve little to affect the management of the UK economy or their local Chester economy., but they can have control of their own asset management and invest in financial products that increase the growth of their money beyond the growth level of the British economy.

INVESTMENTS – THE VALUE OF UNITS CAN FALL AS WELL AS RISE, AND YOU MAY NOT GET BACK ALL YOUR ORIGINAL INVESTMENT

Source used: http://www.telegraph.co.uk/business/2017/11/28/oecd-unveils-gloomy-outlook-uk-economy/