The UK’s GDP growth is expected to decelerate markedly both this year and the next amid a backdrop of low confidence in the business environment, according to FocusEconomics’ latest survey among 21 leading institutions.
In FocusEconomics survey on the UK economy for 2016, it expects a significantly weaker currency and a deteriorated outlook for the labour market.
Economic analysts who participated in the latest FocusEconomics survey on the UK economy predict a 1.4% growth. This is a 0.5% decline from the pre-Brexit estimate in May.
Further, analysts have also revised their forecasts for 2017, as the fallout from the Brexit will continue to be felt.
The FocusEconomics consensus expects the UK economy to grow 0.3% in 2017, a 1.8% downward revision from the 2.1% expansion foreseen in May.
The risks of an unprecedented exit from the EU are being widely discussed and there is consensus among analysts that the separation process is associated with high economic uncertainty.
KBC bank and Credit Suisse are among the most pessimistic analysts, as they forecast growth reduction of 1.5% and 0.5% respectively for 2017.
Frontier Strategy Group also said it had lowered its GDP growth forecast for 2017 to a reduction of 0.5% from the 2.2% expansion expected in May.