Brexit UK faces sluggish growth as global economy is “firing on all cylinders”

There has been a stark warning from Britain’s largest business group about the future of the UK economy.

The CBI has said that the UK will face a sluggish period of growth at the same time the global economy will enter a strong and positive economic outlook. The Eurozone will also benefit from a good period of growth.

The UK’s GDP is likely to rise 1.5 per cent in 2017 and 2018 and then slowing to 1.3 per cent in 2019.

During these troubled times for the UK, the global economy is predicted to reach 3.6 per cent growth in 2017 and 3.7 per cent in 2018.

The Eurozone will also face a period of robust growth, as the UK prepares to leave the common market. The EU’s GDP should reach 2.2 per cent growth this year, an increase from the previous forecast of 1.7 per cent.

CBI Chief Economist, Rain Newton-Smith, said: “Household spending will remain under pressure from squeezed real wages and Brexit uncertainty will weigh on business investment.”

The CBI also warned that in 2019 “a more disorderly outcome from Brexit negotiations could disrupt the economy and financial markets.”

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