After several investment banks revised their outlook for the UK economy in the wake of better economic data coming out of the region, Organization for Economic Co-operation and Development (OECD) too revised its June forecasts. However, the well-respected organization maintained the gloomy outlook. According to the new forecast, the uncertainty surrounding the divorce from the economic bloc would hit the UK economy later but harder. For 2016, it has revised its forecast higher by 0.1 percent to 1.8 percent, however, for 2017, it has lowered the GDP forecast by 1 percent from 2 percent in June. With regard to its downbeat 2017 forecast, the organization said, “uncertainty about the future path of policy and the reaction of the economy remains very high and risks remain to the downside”.

OECD’s new projections are similar to that of UK treasury’s. Treasury revised in its latest forecast to 1.7 percent growth for 2016, while maintained its forecast to 0.7 percent for 2017.

While many suggested that the pre-referendum forecasts were out of the line, these may actually not be, given that the separation process would begin only next year, according to latest communications from the government.