Britain has to keep close economic links with EU to reach strong growth: OECD

Source: Xinhua| 2017-10-18 01:00:07|Editor: Mu Xuequan
Video PlayerClose

PARIS, Oct. 17 (Xinhua) -- Keeping close economic ties with the European Union (EU) even after the Brexit would be "crucial" for Britain to overcome loss of productivity and weakening growth that its divorce from the single-currency bloc has prompted, the Organization for Economic and Cooperation Development said on Tuesday.

"The United Kingdom is facing challenging times, with Brexit creating serious economic uncertainties that could stifle growth for years to come," said Angel Guerria OECD Secretary-General.

"Maintaining the closest economic relationship with the European Union will be absolutely key, for the trade of goods and services as well as the movement of labor. Macroeconomic and fiscal policy can and should continue being used to support the economy, both during and after the exit negotiations," he added.

Guerria said, "Future prosperity will depend on new reforms to improve job quality, boost labor productivity and ensure that the benefits are shared by all."

In its fresh report on the United Kingdom, Paris-based think-tank showed that London outlook was overshadowed by "growing uncertainties and a number of risks", posed by Brexit and which included high inflation that weakened purchasing power, and fall of saving rates.

In this context, the OECD recommended "future action, including new productivity-enhancing fiscal initiatives and comprehensive policy reforms to boost the economic performance of lagging regions nationwide."

Furthermore, it called British officials to do more to ensure high value chain integration for network industries and high levels of access for services sectors to overseas markets.

"Sustained economic progress will hinge on a successful outcome to negotiations with the EU and those still to come with other countries," it added.