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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Five key takeaways from the Spring Statement 2025

Five key takeaways from the Spring Statement 2025

OBR growth, ISA reforms and defence

Sorin Dojan
clock 27 March 2025 • 4 min read
Bank of England halts interest rate cuts amid ongoing inflation

Bank of England halts interest rate cuts amid ongoing inflation

As priced in by markets

Sorin Dojan
clock 20 March 2025 • 2 min read
More work needed to tackle inflation as BoE members warn of further market turmoil

More work needed to tackle inflation as BoE members warn of further market turmoil

BoE MPC members spoke at Treasury Committee hearing

Sorin Dojan
clock 06 March 2025 • 2 min read