UK Economy Surrounded by Brexit Fog

The current Brexit situation is very unclear, which makes 2019 a very challenging year to forecast the UK economy, suggests this report by EY ITEM Club.

Key points include:

  • Growth in 2019 is expected to be supported by a gradual improvement in consumer purchasing power through the year
  • Business investment is likely to be lifted by some firms looking to increasingly invest in automation to make up for labour shortages and to try to boost productivity
  • Assuming the UK does leave the EU with a deal and the economy does not suffer badly in the immediate aftermath of the exit, the Bank of England could very well raise interest rates from 0.75 percent to 1.00 percent in May




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