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OECD Warns U.K. of 10% GDP Drop This Year and Scant Recovery in 2021

  • GDP is already forecast to contract more than 10% this year
  • OECD calls for reforms to boost productivity and investment
A shopper walks past a boarded shop in West Bromwich, U.K.

A shopper walks past a boarded shop in West Bromwich, U.K.

Photographer: Darren Staples/Bloomberg

The OECD is more pessimistic than the Bank of England about the prospects for the U.K. economy, and it hinted that the outcome could be even worse than its own projections.

The surge in coronavirus cases and the possibility of splitting from the European Union without a trade deal mean the country faces “major downside risks.” The Paris-based group said gross domestic product is already on course to shrink by more than 10% this year and only partially recover its losses in 2021.