Post-Brexit UK will see return to strong growth
New forecasts from the Centre for Economics and Business Research (CEBR) predict the UK economy overall will grow by just 1.3% this year – down from an earlier forecast of 1.7%. The forecast for 2018 has also been revised down to 1.2%, putting the UK on course for the slowest GDP growth since 2009. However, the CEBR assessment is less downbeat on the Brexit outcome. It believes a deal with the EU will emerge and that confidence will rebound, leading to stronger growth after 2018. The CEBR expects GDP to expand by 1.6% in 2019 and by 1.9% in 2020, upward revisions from pre-election forecasts of 1.5% and 1.8%. Nina Skero, head of macro economics at the CEBR, said: "Our data on confidence show that the newly created political uncertainty is highly likely to weigh on growth in the short term. This means that we now do not expect an interest rate rise until the end of 2018."
Source: The Times (03/07/2017)