Expect three years of weak economic growth, warns EY Item Club

Downgraded forecasts

Laura Dew
clock • 1 min read

UK growth will remain weak for at least three years, according to the EY Item Club, with the prospect worsening if Britain is left with a no-deal Brexit.

The organisation has downgraded its forecast for growth in 2018 from 1.4% three months ago to 1.3% while the growth forecast for 2019 has been lowered to 1.5% from 1.6% in the summer. If correct, the 2018 figures would be the worst year of UK economic growth since the financial crisis.  Furthermore, these are based on the assumption the UK could achieve transition terms, but the figures would be "significantly weaker" if this did not occur.  Howard Archer, chief economic adviser to the EY Item Club, said: "Heightened uncertainties in the run-up and the aftermath of the UK's exit co...

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