The UK economy will increase by 1.7% in 2016 and only by 1% in 2017, RBC-Ukraine reports.
The leading economists forecast the economic recession in United Kingdom in 2016 and 2017 due to the country’s decision to withdraw from the European Union, as it is evidenced by the research data of the National Institute of Economic and Social Researches.
The rise in inflation is also expected to 3% till late 2017, which, first of all, is connected with the depreciation of national currency.
As per the forecasts of specialists of the institute, UK economy will most likely increase by 1.7% in 2016, but only by 1% in 2017.
“According to our expectations the United Kingdom will face significant slowdown of economic growth in the second half of 2016, and this situation will remain till late 2017”, Kirby noted.
Meanwhile, the Confederation of the British Industry states in its report that small and medium enterprises of the United Kingdom fear reduction of orders within the nearest 3 months.
According to CBI’s director of Economics Rain Newton-Smith, due to the weakening of pound sterling small and medium enterprises scrap some of their investment projects, despite the expectations for import increase.
Meanwhile, the British buyers win from price reduction in shops – the prices decreased by 1.6% from July 2015 to July 2016. For the last year the food products decreased in price by 0.8% and non-grocery products – by 2.2%.
