UK economic outlook downgraded as it becomes slowest-growing advanced nation in the world
IMF downgrades UK's economic growth forecast following weaker-than-expected performance.
The UK economy grew by just 0.2% in the first quarter of 2017, making it the slowest-growing advanced economy in the world.
In its widely watched World Economic Outlook, the Washington-headquartered organisation said that it now expects the UK economy to grow by 1.7 per cent this year compared to a previous forecast of 2 per cent.
It kept its estimate for 2018 unchanged at 1.5 per cent.
The UK economy initially proved resilient in the aftermath of last June’s referendum, but in recent months—largely driven by a tumble in the value of the pound—inflation has spiked to close to 3 per cent squeezing real wages.
Many of the biggest trade bodies in the UK have expressed deep concerns around Brexit and what it might mean for tariffs, trade and the free movement of people.
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