Newspaper article The Journal (Newcastle, England)

Economic Growth Forecasts Revised Down

Newspaper article The Journal (Newcastle, England)

Economic Growth Forecasts Revised Down

Article excerpt

ECONOMISTS have downgraded Britain's growth prospects in the wake of political uncertainty following the general election and as a prolonged Brexit drag on business investment looms.

New forecasts by the Centre for Economics and Business Research (Cebr) show that the UK economy will grow by just 1.3% in 2017, a substantial downward revision from an earlier forecast of 1.7%.

The forecast for 2018 has also been revised down to 1.2% from 1.6% in the face of "newly created political uncertainty", lower business investment because of Brexit and weaker consumer spending.

If borne out, this would make 2018 the year with the slowest GDP growth since 2009, the height of the financial crisis.

Consumers have seen their spending power come under increasing pressure from soaring inflation triggered by the collapse of the pound following Britain's vote to leave the European Union, which has in turn impacted high street sales.

Last week, data from Gfk showed that consumer confidence has collapsed to post-Brexit vote lows. …

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