It said that the expected negative effects on the rest of the global economy of Brexit – compared in June to the equivalent of a hard landing for China – had also been delayed. For 2016, GDP growth has been supported by a strong performance prior to the referendum, even though business investment contracted. “It all adds up to appropriate policy support.”The OECD said it expected the UK economy to grow by 1.8% this year, a 0.1 point increase on its pre-referendum estimate. She said there were three reasons for the rethink: countries had implemented a lot of austerity; global growth was flat-lining, and ultra-low interest rates had created conditions in which governments could borrow cheaply. Mann added that action was needed to lift the global economy out of a low-growth trap.

Source: The Guardian September 21, 2016 09:00 UTC