Caspian Energy Journal Caspian European Club
Monday, 15 October 2018 15:00

UK economy heading for worst year

UK economy heading for worst year

The British economy is heading for its worst year in almost a decade amid the growing risks from no-deal Brexit, according to a leading economic forecaster EY Item Club, Caspian Energy News ( reports with reference to The Guardian.

After official figures revealed zero growth in GDP in August, the group of economists of EY Item Club, which is the only non-government forecasting organisation to use the Treasury modelling of the economy, said it had downgraded its growth forecast for this year and next as a consequence.

It forecast growth of 1.3% for the whole of 2018, down from a previous estimate of 1.4%. This would be the worst annual period for growth since the financial crisis.

EY Item Club forecast a modest recovery next year if there was a smooth Brexit deal, with growth of 1.5%, down from its previous estimate of 1.6%.

Economists have said failure to reach such a deal could significantly harm the UK economy, with the International Monetary Fund warning of “dire consequences” for growth.

Inflation is forecast to fall from about 2.7% to 2.3% by the end of the year, above the Bank of England’s target rate.

Person in charge of the newsline: Olga Nagiyeva 


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