LONDON (UK) – Britain risks a big hit to trade and jobs if it cannot strike a post-Brexit deal with the European Union by the end of 2020 or fails to extend its current Brexit transition, the Organisation for Economic Co-operation and Development said on Wednesday.
Risks around Britain’s future relationship with the EU were compounding the uncertainty about the duration of COVID-19 restrictions on the economy, the OECD said.
“The failure to conclude a trade deal with the European Union by the end of 2020 or put in place alternative arrangements would have a strongly negative effect on trade and jobs,” it said in an update of its global economic forecasts.
Earlier, the OECD said Britain, with its huge services industry that has been hammered by the coronavirus shutdown, was expected to see the worst downturn among the countries it covers with the economy forecast to contract 11.5% this year.
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