UK growth to slow as Brexit hits investment - EU
UK economic growth will slow sharply over the next two years as companies are likely to put investment on hold because of uncertainty over the outcome of Brexit negotiations with EU.
This is according to the latest growth forecasts from the European Commission today.
The Commission slashed its forecast for economic growth in Britain for this year to 1.5% from 1.8% projected earlier this year.
It also forecast growth of 1.3% in 2018 and 1.1% in 2019, the year Britain leaves the European Union.
"Investment growth is forecast to weaken in 2018, as many firms are likely to continue deferring investments in the face of uncertainty," the Commission said.
"Given the ongoing negotiation on the terms of the UK withdrawal from the EU, our projections for 2019 are based on a purely technical assumption of status quo in terms of trading relations between the EU27 and the UK," it said.