English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Britain should remain in the EU says OECD

LONDON: October 17, 2017. In its latest survey of the UK economy the OECD says the positive impact on growth "would be significant should Britain remain in the EU".

The tParis-based think-tank says a "disorderly Brexit" following a break-up of EU-UK negotiations, with no immediate prospect of a trading relationship, could trigger an adverse reaction on financial markets, push the foreign exchange rate to new lows and lead to sovereign debt rating downgrades.

This would lead to a business investment "seize up", rising prices, reduced private spending and increased pressure on financing the country's current account deficit.

Airbus  BombardierAt the same time the OECD says Scotland could vote to remain in the EU with another referendum, the Northern Ireland peace process could be threatened by a "hard border" with the Irish Republic, and the result would lead to "major negative economic impacts, hampering business and consumer confidence".

The OECD notes UK exports have not benefited significantly from a 20 percent fall in the value of Sterling since June 2016 and "the persistence of currency weakness could notably reflect financial market expectations about the longer-term cost for the UK economy of changes in its trading arrangements after Brexit."

The report explains that Britain's exports have a "low responsiveness" to exchange rate movements, due in part to increased participation in global value chains and a resultant high import content in exports: "This leads to a high pass-through of import prices into export prices, reducing scope for exporters to win market share following currency depreciation," it adds.

At the same time productivity gains have made no meaningful contribution to UK output performance since 2007, relying instead on higher employment and [more] hours worked per employee. Moreover, while the level of UK labor productivity is similar to the OECD average, it is about 20-25 percent lower than in the U.S, France and Germany.

"The United Kingdom is facing challenging times, with Brexit creating serious economic uncertainties that could stifle growth for years to come," said OECD secretary-general Ángel Gurría. "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."

Last month the OECD projected the global economy would grow by 3.5 percent this year and 3.7 percent in 2018, with industrial production and trade picking up.

In the EU German GDP is forecast to grow 2.2 percent and 2.1 percent; France by 1.7 percent and 1.6 percent respectively; Italy 1.4 percent and a 1.2 percent; and Britain 1.6 percent in 2017 and just 1.0 percent next year. U.S. growth is estimated at 2.1 percent in 2017 and 2.4 percent in 2018.

(Pictured: Airbus has agreed to produce the Bombardier C Series aircraft from an Airbus assembly facility in Mobile, Alabama. The deal is expected to underwrite complex import and export supply chains linking existing facilities in Northern Ireland, Canada and the U.S.)

News

Written on 17/11/2017, 21:43
decathlon-takes-to-the-railsDOURGES, France: November 16, 2017. Maersk Line and Damco, subsidiaries of A.P. Møller – Mærsk, have completed their first block train from Wuhan, China...
Written on 16/11/2017, 18:06
mia-director-resignsMIAMI: November 14, 2017. Miami-Dade County Aviation Department director and CEO Emilio González, the driving force behind much of Miami International...
Written on 14/11/2017, 20:26
truck-manufacturers-face-class-action-lawsuitLONDON: November 14, 2017. UK law firm Collyer Bristow has established a £100 million class action for truck operators that may have been overcharged by...
Written on 14/11/2017, 17:03
finland-opens-new-rail-route-to-chinaKOUVOLA, Finland. November 12, 2017. A new weekly rail service between Northern Europe and China launched on November 10 as the first train with 41...
Written on 10/11/2017, 20:10
imd-acknowledges-family-business-excellenceGRAN CANARIA, Canary Islands: November 10, 2017. Swiss business school IMD has recognized global brand management company Pentland Group with its 22nd...
Written on 08/11/2017, 22:02
how-much-carbon-risk-in-us-355-billionLONDON: November 08, 2017. The Carbon War Room (CWR), founded in 2009 by Richard Branson and others to advance the low carbon economy, is calling for the...
Written on 07/11/2017, 19:59
costa-rica-signs-biofuel-deal-with-klmAMSTERDAM: November 07, 2017. As delegates to the 2017 UN Climate Change Conference (COP 23) meet in Bonn this week, KLM and the government of Costa Rica...
Written on 06/11/2017, 02:27
qatar-airways-takes-cathay-pacific-stakeHONG KONG/DOHA: November 06, 2017. Qatar Airways is buying 9.6 percent of Cathay Pacific Airways (CX) for HK$5.16 billion (US$661 million). The shares...
Written on 03/11/2017, 15:09
slower-airfreight-growth-in-2018-says-iataGENEVA: November 01, 2017. IATA reports a 9.2 percent increase in flown freight in September 2017 compared to the same month last year as capacity rose...
Written on 01/11/2017, 19:42
heathrow-misery-must-end-say-forwardersLONDON: November 01, 2017. The head of the UK's freight forwarder association says his members "want action, not words" to resolve congestion at...
Written on 30/10/2017, 21:03
china-s-one-belt-one-road-gets-new-rail-linkBAKU, Azerbaijan: October 30, 2017. The Baku-Tbilisi-Kars (BTK) railway connecting Azerbaijan, Georgia and Turkey has opened following the completion of a...
Written on 29/10/2017, 19:47
dp-world-to-support-us-500-billion-saudi-projectRIYADH, Saudia Arabia: October 26, 2017. Speaking at the Future Investment Initiative this week, DP World chairman and CEO Sultan Ahmed Bin Sulayem...
Written on 27/10/2017, 20:40
deutsche-post-dhl-delivers-unity-symbol-ahead-of-climate-conferenceBONN: October 26, 2017. As the official logistics partner for the UN Climate Change Conference (COP23) in Bonn next month, Deutsche Post DHL has shipped a...
Written on 26/10/2017, 19:41
change-of-chairs-at-tiacaMIAMI: October 26, 2017. The Board of the International Air Cargo Association has appointed Jan de Rijk Logistics CEO Sebastiaan Scholte its new chairman...
Written on 26/10/2017, 16:06
amazon-to-launch-keyless-home-deliverySEATTLE: October 25, 2017. Amazon will launch its 'Amazon Key' home delivery service for Prime members in 37 U.S. cities on November 08 at a one-time cost...
Written on 25/10/2017, 20:52
delta-introduces-a350-capacity-as-pharma-growth-continuesATLANTA: October 25, 2017. Delta Air Lines is to launch its A350-900 aircraft on flights from Detroit to Tokyo-Narita on October 30 followed by services...
Written on 20/10/2017, 20:31
cma-cgm-members-add-intra-asia-capacitySINGAPORE: October 20, 2017. CMA CGM Group subsidiaries APL and Cheng Lie Navigation (CNC) have launched a new Korea China Straits (KCS) box service...
Written on 19/10/2017, 21:13
britain-requires-new-aviation-strategy-with-or-without-brexitLONDON: October 18, 2017. The Manchester Airports Group (MAG), owner of Manchester, London Stansted and the airfreight-focused East Midlands Airport, has...
Written on 18/10/2017, 20:06
airlines-increase-support-for-endangered-speciesDOHA: October 18, 2017. Qatar Airways has joined Airlines for America, Delta, Emirates, IATA, Kenya Airways and United in the USAID Reducing Opportunities...
Written on 17/10/2017, 20:05
britain-should-remain-in-the-eu-says-oecdLONDON: October 17, 2017. In its latest survey of the UK economy the OECD says the positive impact on growth "would be significant should Britain remain...

- powered by Quickchilli.com -