The UK economy is set to see its growth slow over the next two years due to the impact of Brexit, the European Commission has said.
Following the publication of the Commission’s Economic Forecast, economic commissioner Pierre Moscovici told a Brussels press conference that “the UK’s vote to leave the EU continues to pose a significant downside risk,” both to the British economy and to the wider Eurozone.
But despite its warnings the Commission has also upgraded its forecasts for UK growth in 2017 to 1.5%, up from a 1% projection made last autumn.
This is, however, still significantly below its pre-Brexit predictions of 2.1% growth, and reflective of the “unbalanced” growth the UK has experienced since June.
It forecasts that the UK will be overtaken by growth in the rest of the European Union by 2018, when the UK is projected to see an economic rise of 1.2% compared to the EU’s 1.8%.