ONE of the establishment's biggest scaremongers in the lead-up to the EU referendum has pulled a spectacular U-turn over the affect a Brexit vote would have on the UK economy.
The OECD has backtracked on its earlier estimates
The Paris-based Organisation for Economic Co-operation and Development (OECD) has now raised its growth forecast for Britain, after previously warning the UK would be shaken in the immediate aftermath of a vote to Leave.
The think-tank had predicted growth would be at just 0.1 per cent for 2016, but has now changed its tune and re-forecast at 1.8 per cent.
Britain has produced a deluge of strong economic data since the referendum confounding expectations of doom-monger Remain campaigners.
The OECD said the Bank of England's swift action following the vote to leave had helped maintain confidence and stave off the worst-case scenario after the Brexit vote.
Monetary policymakers last month cut interest rates and expanded the UK's money-printing programme.
In today's update the OECD said: "While markets have since stabilised, sterling has depreciated by around 10 per cent in trade-weighted terms since the referendum.
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"For 2016, GDP growth has been supported by a strong performance prior to the referendum, even though business investment contracted."
The OECD last month confirmed Britain was the fastest growing G7 country between April and July.
The UK's 0.6 per cent growth was more than double the 0.3 per cent measured in the US.
Britain also had the highest annual growth 2.2 per cent.
However, today the think-tank said growth next year will be be hit by the Brexit vote - and predicted a slowdown to one per cent.
The organisation also said the UK outlook depends on a trading arrangement with the EU and other countries, which will be "critical to its economic prospects".
The OECD is just the latest establishment figure to backtrack over Brexit claims.
Goldman Sachs, JP Morgan, Morgan Stanley and Credit Suisse are among the firms that have all now conceded the Brexit vote will not trigger a UK recession.
http://www.express.co.uk/finance/city/712934/OECD-brexit-forecast-uturn-economy