Newspaper article The Journal (Newcastle, England)

UK Economy Due to Slow as Brexit Uncertainty Takes Hold

Newspaper article The Journal (Newcastle, England)

UK Economy Due to Slow as Brexit Uncertainty Takes Hold

Article excerpt

THE UK economy will slow in the coming years as Brexit uncertainty hampers growth and consumers endure a spending squeeze caused by higher prices and lower wages, according to the Organisation for Economic Co-operation and Development (OECD).

The OECD stood by its economic forecasts for UK gross domestic product (GDP), predicting it to slow from 1.8% to 1.6% for 2017, before dropping to 1% in 2018. It also warned that weaker growth could drive the unemployment rate above 5%.

But while it expects household consumption to ease, it said consumers would also use money normally earmarked for savings to keep spending in the face of higher inflation.

In its economic outlook, the OECD said: "Private consumption growth is projected to slow, as higher inflation holds back real earnings, but a weaker growth outlook should mitigate the extent of price pressures in the economy.

"Also, households are expected to continue to support their consumption by further reducing their saving rate. …

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