The OECD raised its outlook for the eurozone, from 1.4 per cent to 1.6 per cent

Britain will barely grow faster than the eurozone this year as uncertainty about the referendum depresses activity, the Organisation for Economic Co-operation and Development warned, as it slashed its forecasts for the UK and said the world was heading into a “low growth trap”.

The Paris-based think tank downgraded UK growth to 1.7 per cent this year from 2.1 per cent at its February update. The cut, which was among the deepest of all the OECD’s 34 member countries, was blamed entirely on “uncertainty about the outcome of the referendum [causing] a significant slowdown in economic activity”.

Six weeks ago, the OECD warned that voting to leave the European Union would lumber every Briton with a “Brexit tax” as dwindling growth would make life more