EU forecasts British economic slowdown during Brexit talks
BRUSSELS — The European Union expects Britain’s economy to slow down as the country negotiates its exit over the next couple of years, but forecasts an improvement for the bloc as a whole despite a range of uncertainties.
In its Winter Economic Forecast released Monday, the 28-nation EU said it predicts British economic growth will slump to 1.5 per cent this year and 1.2 per cent in 2018 from a recent high of 3.1 per cent registered in 2014.
The wider EU, on the other hand, is expected to improve steadily, with growth picking up from 1.6 per cent in 2014 to 1.8 per cent this year and next.
“The European economy has proven resilient to the numerous shocks it has experienced over the past year,” said EU financial affairs chief Pierre Moscovici. “Growth is holding up and unemployment and deficits are heading lower.”