United Kingdom can expect low economic growth for the next three years, while a no-deal Brexit could dent growth even further, says a forecasting body. The EY Item Club predicted GDP growth of 1.3% this year and 1.5% in 2019, down from 1.4% and 1.6% respectively in its previous outlook three months ago.1 comment
The International Monetary Fund has warned that a no-deal Brexit on World Trade Organization terms would entail substantial costs for the UK economy. IMF said that all likely Brexit scenarios would entail costs, but a disorderly departure could lead to a significantly worse outcome.
Protracted Brexit talks are weighing on the recovery prospects of Jaguar Land Rover, according to its Indian owner. The focus of Tata Motors, which bought JLR in 2008 from Ford, is to ensure the automaker remains financially strong in the face of the challenges, Tata Sons Chairman Natarajan Chandrasekaran said in an interview over the weekend. Tata Sons is the parent of Tata Motors.
The United Kingdom economy bounced back in July as the services sector rebounded and construction output reached a record high. The Office for National Statistics (ONS) said the economy expanded 0.3% in July, while gross domestic product (GDP) rose 0.6% on a three-month basis.
Inflation in the UK remained at 2.4% in May, according to the Office for National Statistics (ONS), after its fall was halted by a sharp rise in fuel costs. The ONS said that fuel prices increased by the biggest monthly amount since January 2011, rising by 3.8%.
Terrorism has hit the UK’s economy harder than any other EU country in recent years, according to a study. Analysis found the UK lost an estimated 43.7 billion Euros (£38.3 billion) in GDP terms due to terrorist activity from 2004 to 2016, according to a report published by the Press Association.
The European Union economy slowed in the first quarter of the year, official Eurostat figures have showed. Economic growth in the Euro zone slowed to 0.4% for the period from January to March 2018, compared with 0.7% in the previous quarter. Growth in the 19-country single currency bloc reached 2.5% year-on-year.
The UK economy grew at its slowest rate since 2012 in the first quarter of the year, the Office for National Statistics (ONS) has said. GDP growth was 0.1%, down from 0.4% in the previous quarter, driven by a sharp fall in construction output and a sluggish manufacturing sector.
The Bank of England is likely to raise interest rates twice this year and twice in 2019, despite a sluggish economy, says a forecasting body. Bank governor Mark Carney has said a rate rise is “likely” this year, but any increases will be gradual.
Former British Prime Minister John Major called on Wednesday for a free vote in parliament on whether to reject any deal negotiated with the European Union, warning the current plans are “bad politics” that will damage the economy.