Now OECD doom-mongers admit Brexit poll ‘shock’ is already over

BRITAIN has already overcome the worst of ‘Brexit shock’ and the economy will stabilise later this year, according to a once-leading proponent of Project Fear.

In a doom-laden report published before the referendum, the Organisation for Economic Co-operation and Development said a vote to leave the European Union ‘would be a major negative shock to the UK economy’.

The Paris-based watchdog – which receives funding from Brussels – warned of a ‘Brexit tax’ that could leave families as much as £5,000 worse off.

Before the June 23 vote, the then-prime minister David Cameron said leaving the EU would put ‘a bomb under the economy’ while the chancellor warned it would cause a ‘DIY recession’. But in a humiliating U-turn yesterday, the OECD conceded that the outlook is far brighter than it predicted, making it just the latest organisation to tear up its dire forecasts of economic disaster.

It came as former Bank of England deputy governor Sir Charlie Bean said economic forecasts should be taken with ‘a pinch of salt’.

The OECD said: ‘Although there remains uncertainty about the nature of the agreement the UK will eventually conclude with the EU, the volatility in data that emerged in the weeks immediately following the referendum appears to have reduced.

‘Assuming this remains the case for the next six months, the current assessment for the United Kingdom points to growth continuing to slow, before stabilising around a lower rate towards the end of the year.’

John Longworth, the former director general of the British Chambers of Commerce, who campaigned for Leave, said: ‘I’m not surprised that the OECD has changed its tune.

While there was always going to be some short-term uncertainty in the markets, it was clear that the real economy would continue to be strong. ‘The Government now has a golden opportunity to make Britain the best place in the world to do business.’