Organization for Economic Co-operation and Development (OECD) has slashed GDP forecast for United Kingdom and also issued economic warnings against Britain’s exit from European Union, in a report today.

It has GDP forecast by 0.4% to 1.7% for the year 2016. It has also slashed GDP forecast for United States by 0.2% to 1.8% for the year. Japan’s GDO got revised from 0.8% to 0.7%. In contrast Euro Zone GDP got forecasted up from 1.4% to 1.6%. It forecasted 3% growth globally, citing weaker trade growth, subdued investments, sluggish wages and lower economic activities in many emerging markets.

However, it warns it would be much different from these baselines, if Brexit do occurs. UK GDP will get reduced 0.5% every year up to 2018 and growth will be 3% lower from the baseline scenario of stay by 2020. It warns global impact could be much bigger if Brexit creates significant financial market volatility. It says, Europe would suffer too as rest of it would face GDP shrinkage in tune of 1%.

“The reduced access to the EU market would lower inward foreign direct investment, with associated adverse effects on innovation and managerial quality. Lower trade openness would hit economic dynamism and productivity”