As reported by Reuters, the Confederation of British Industry (CBI) warns that UK economic growth is set to slow against the UK’s major peers once again.
Key quotes
“The world’s fifth-largest economy looks likely to grow by 1.4 percent in 2018, according to the CBI, weaker than projected growth in the euro zone of 2.2 percent and in the United States of 2.8 percent. Britain went from being the fastest-growing economy in the Group of Seven to its slowest last year as the value of the pound fell after the Brexit vote in 2016 and companies turned cautious about investment.
The CBI argued before the Brexit referendum that staying in the EU would be best for Britain’s economy. The CBI’s forecast for Britain’s growth rate this year represented a slight reduction from its previous forecast of 1.5 percent, reflecting the economy’s weak start to the year during unusually cold weather, the group said. Growth looks set to slow to 1.3 percent in 2019, when it will again lag behind the euro zone and the United States, the CBI said.
With less than a year to go before Britain is due to leave the EU, the CBI described the risks to the economy as “skewed to the downside”, especially if talks between London and Brussels on their new post-Brexit relationship turn sour.”
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