Research by the British Chambers of Commerce (BCC) has revealed that economic growth across the whole of the UK is likely to continue to slowdown during 2017 and 2018.
The BCC analysis of the state of the current economy and its future forecasts show that GDP growth for 2017 is likely to be around 1.1 per cent, this is significantly lower than its final figure for 2016, which revealed that the economy grew by 2.1 per cent.
However, things in 2018 aren’t likely to improve much, with the group expecting growth of just 1.8 per cent, which while higher (+0.4 per cent) than earlier predictions made by the group in 2016, it is still lower than last year.
The group also predict that in 2017 inflation will rise above the two per cent target set by the Bank of England, while household consumption will slow from 2.7 per cent in 2016 to 0.6 per cent in 2017 and 2018.
Furthermore, the BCC also expects business investment to fall by 2.1 per cent in 2017 and 0.3 per cent in 2018, as businesses become more risk averse.
Export growth is also predicted to slow to 2.3 per cent in 2017, before rising in 2018 to 2.9 per cent.
The BCC analysis suggests that much of this slowdown may be the result of the various uncertainties present in the UK and global markets, including the ongoing Brexit saga and the election of Donald Trump.
Dr Adam Marshall, director general of BCC, said: “While some firms see significant opportunities over the coming months, many others now see increasing uncertainty, which is weighing on their investment expectations and forward confidence.
“Lower sterling and rising inflation are now starting to affect business communities and consumers across the UK.”