Brexit would lead to loss of income for Britons, OECD warns

PanARMENIAN.Net - The OECD on Wednesday, April 27 became the latest international organisation to urge Britain to stay in the European Union, warning Britons would be worse off if they voted to leave in the June referendum, AFP reports.

"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 Organization for Economic Cooperation and Development said.

In a new report, the inter-governmental organisation warned that 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 percentage points smaller by 2030.

It cited the impact of economic uncertainty, higher trade tariffs, a reduction in economic migration and the impact on sterling as the main risks in the near term.

In real terms, this relative loss of GDP would see household income reduced by £2,200 (2,800 euros, $3,200) in the next four years and £3,200 by 2030 -- and up to £5,000 in the most pessimistic case compared to what it would be if Britain stayed.

"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," said OECD secretary-general Angel Gurria.

"We see no economic upside for the UK whatsoever.

"The bigger question is, why spend so much wealth, well-being, time, energy and talent in order to compensate the damage of a bad decision when you can simply avoid taking such decisions."

The analysis reflects that made by Britain's finance ministry, and follows warnings of the economic damage of a Brexit by International Monetary Fund and the G20.

However, campaigners for Britain to leave the EU dismissed the study, accusing the OECD of protecting its own interests.

"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.

He said the OECD had recommended Britain join the euro, "so why should we listen to their doom-laden predictions about leaving the EU?"