Britain urged not to vote for EU exit
US President Barack Obama (left) talks during a press conference with Britain's Prime Minister David Cameron in London on April, 22, 2016. The Organisation for Economic Cooperation and Development’s verdict that Britons would be financially worse off if they voted to leave the EU, comes as Britons prepare for an EU membership referendum on June 23, follows warnings over Brexit’s potential economic damage from the IMF, the G20 and US President Barack Obama. AFP PHOTO | BEN STANSALL
What you need to know:
- The Organisation for Economic Cooperation and Development (OECD) on Wednesday warned Britons would be financially worse off if they voted to leave the European Union, as new figures showed a slowdown in Britain’s economic growth.
- The Organisation for Economic Cooperation and Development’s verdict, which comes as Britons prepare for an EU membership referendum on June 23, follows warnings over Brexit’s potential economic damage from the IMF, the G20 and US President Barack Obama.
- The OECD’s interjection however sparked anger from “Leave” campaigners who attacked the inter-governmental body for seeking to preserve its taxpayer-funded “global bureaucracy”.
- British gross domestic product (GDP) would be 3.3 percentage points smaller by 2020 if Britain left the EU than if it stayed, and 5.1 per centage points smaller by 2030, the OECD said.
LONDON, Wednesday
The Organisation for Economic Cooperation and Development (OECD) on Wednesday warned Britons would be financially worse off if they voted to leave the European Union, as new figures showed a slowdown in Britain’s economic growth.
The Organisation for Economic Cooperation and Development’s verdict, which comes as Britons prepare for an EU membership referendum on June 23, follows warnings over Brexit’s potential economic damage from the IMF, the G20 and US President Barack Obama.
The OECD’s interjection however sparked anger from “Leave” campaigners who attacked the inter-governmental body for seeking to preserve its taxpayer-funded “global bureaucracy”.
“In some respects, Brexit would be akin to a tax on GDP, imposing a persistent and rising cost on the economy that would not be incurred if the UK remained in the EU,” the OECD said in a new report released in London.
BRITISH GDP
British gross domestic product (GDP) would be 3.3 percentage points smaller by 2020 if Britain left the EU than if it stayed, and 5.1 per centage points smaller by 2030, the OECD said.
It cited the impact of economic uncertainty, higher trade tariffs, a reduction in economic migration and the impact on the sterling currency as near-term risks.
“The UK is much stronger as a part of Europe, and Europe is much stronger with the UK as a driving force,” said OECD secretary-general Angel Gurria.
“There is no upside for the UK in Brexit. Only costs that can be avoided and advantages to be seized by remaining in Europe. No one should have to pay the Brexit tax.”
In real terms, the relative loss of GDP would see household income reduced by £2,200 (Ksh320,000) in the next four years and £3,200 by 2030 - and by up to £5,000 in the most pessimistic case compared to what it would be if Britain stayed, according to OECD analysis.
“The best outcome under Brexit is still worse than remaining an EU member, while the worst outcomes are very bad indeed. The Brexit tax just gets bigger,” added Gurria.
The analysis reflects that made by Britain’s finance ministry.
However, campaigners for Britain to leave the EU dismissed the study.
“Jose Angel Gurria is part of a global bureaucracy that feathers its nest with vast expenses claims paid for by taxpayers,” said Robert Oxley, a spokesman for the Vote Leave campaign.
