In a return of Project Fear they claimed Brexit should be overturned – despite 17.4 million people voting to leave the European Union (EU) in last year’s historic vote.
The Organisation for Economic Co-operation and Development (OECD) today said reversing Brexit would be “positive” and “significant” for the UK economy.
Their latest economic survey for Britain projects an economic growth of one per cent next year – a figure they say is being hampered by Brexit.
The report warned Britain’s economic prospects could be further hit by a “disorderly Brexit” if negotiations between the EU and UK are cut short, triggering a sharp reaction by financial markets.
They said this would send the exchange rate to new lows and leading to a downgrade in the UK’s sovereign rating.
Their new report warned: “Business investment would seize up, and heightened price pressures would choke off private consumption.
“The current account deficit could be harder to finance, although its size would likely be reduced.”
Reversing Brexit, however, would create a very different outlook for the UK, they claimed.
READ MORE: What happens if the UK quits Brexit talks with no deal?
The report said: “In case Brexit gets reversed by political decision (change of majority, new referendum, etc), the positive impact on growth would be significant.”
OECD did admit their predictions could be overly pessimistic, however, especially as the outcome of Brexit talks with the EU remains unknown.
The report said the negotiations could “prove more favourable” than assumed in its report, boosting trade, investment and growth.
But they stressed this would require “an ambitious EU-UK agreement and a transition period to allow for adjustment to the new agreement”.
he Brexit referendum last year was marred by scaremongering economists and politicians who predicted dire developments if Britain quit the bloc.
George Osborne and David Cameron said families would personally lose thousands of pounds each, with tax rises and an emergency budget inevitable.
None of this has come to pass and so-called experts have admitted they were wrong to be so pessimistic.
A celebratory David Fox said last week: “The project fear doom-mongers were wrong.
“We’ve had a positive response from other governments.
“They, like us, want to ensure there is no disruption to trade at point of departure of the EU.
“We will want to get as many of those in place as we can, part of that depends upon the willingness of partners to get it ready on time.
“There are obviously contingency measures under WTO rules to ensure contingent market access in any case.”