Can the Economy Overcome Heightened Brexit Uncertainties?
In their Autumn Forecast, EY discusses how heightened uncertainties over global trade and Brexit will fuel increased business and consumer caution.
When looking at the historic performance of the UK economy, the messages are not reassuring. The EY ITEM Club suggests that we are nearing the end of the growth cycle and may be running out of road.
Key points include:
- The UK economy is now expected to grow at 1.3 percent, rather than the 1.4 percent predicted in the summer.
- The uptick in real pay levels has weakened, and higher oil and utility prices are likely to squeeze consumer spending.
- Investment and trade are expected to remain under pressure and it is unlikely that Government spending, even with the promised reduced austerity, will be able to provide any noticeable boost to GDP growth this year.