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EU says British economy remains subdued as uncertainty continues

BRUSSELS
2019-05-08 13:46

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The British economy slowed markedly in 2018 and is forecast to remain subdued, the European Commission said on Tuesday.

After slowing from the 1.8 percent growth in 2017 to 1.4 percent in 2018, the European Economic Forecast, published by the EU's executive arm, said Britain's growth will moderate to 1.3 percent in 2019 and 2020.

In 2018, business investment fell for four consecutive quarters -- the first such instance since 2009, according to the forecast, which said survey evidence suggests that the fall was largely due to the impact of uncertainty over Britain's future trading relationship with the EU.

While private consumption continued to make the largest contribution to British growth in 2018, it grew at the slowest pace since 2012 as the impact of subdued consumer confidence lingered.

Recent consumer confidence surveys suggest that savings intentions of consumers are high, reflecting weak overall consumer confidence, according to the forecast.
 
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