Brexit - UK Economy Set For Worst Year Since Financial Crisis


That 'Brexit Bonus' apparently keeps popping it's head over the parapet.

Now the Bank of England has cut the UK's growth forecast (GDP) for 2019, as Brexit worries spread from companies to consumers. To us. Seems finally those who voted for this process are waking up to reality.

In its latest forecast, the Bank cut growth from 1.7% to 1.2%, and said there was a 25% chance of a recession this year - and that's assuming the UK’s departure from the EU in seven weeks goes smoothly. If it doesn't, you can throw that number out of the window - it'll be far, far worse.

Growth is forecast to be 0.2% in each of the first two quarters of 2019, down from the 0.4% in each period pencilled in by the Bank, as recently as November last year.

The Bank said ...
The economic outlook will continue to depend significantly on the nature of EU withdrawal, in particular the new trading arrangements between the EU and the UK, whether the transition to them is abrupt or smooth, and how households, businesses and financial markets respond.
Rain Newton-Smith, Chief Economist at the CBI said ...
It’s now crunch time – a no-deal scenario must be taken off the table because the economy is seizing up from uncertainty.
The Bank’s forecasts, when put together with recent business surveys, illustrate the harmful impact on the economy the longer that this goes on.

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