IMF Issues A Downgrade Of UK Economic Growth Amid Fears Brought About By ‘Brexit’

The forecast for the UK economy seems bleak. Reports came in and the British Chambers of Commerce (BCC) has already downgraded expected growth of the UK economy by about 1.1 percent. It has also included the GDP rating, which is expected to slow down; from 1.4 percent, forecast models have it at around 1.3 percent.

Points of interest that the British Chambers UK report highlighted are from the business investment and household consumption fronts. The GDP is downgraded, but it is expected to rise up to 1.6 percent by the year 2020. This is to be compounded by housing consumption, which will dip down to 1.0 percent this year before rising to 1.3 percent next year and 1.7 percent next year.

Trade will have a negative forecast for this year and the next, while investment will be down 1.4 percent in 2018 and will remain weak through 2019, before rising to 1.5 percent in 2020. Business investment will also experience a lean season as it is expected to only post growth indicators of 1.0 percent this year, 1.2 percent the next, and 1.4 percent in 2020.

The overall forecast, as Independent UK reports, is that 'Brexit' is turning out to be bad for UK business. In contrast, the UK's neighbors are faring much better; while the UK has been downgraded, most of the G7 countries have been upgraded, largely because they're riding the wave of a global economy that's been seen as steadily on the rise.

The US, Germany, France, Italy, and Japan have all enjoyed upward trends this year. Most of them are predicted to have growths as robust as 3.9 percent, a record growth for the time and trends experienced by these countries. The last time a growth this robust was expected was in 2011 when the forecast was pegged at 4.2 percent.

Even as the economy is on a downward trend, Suren Thiru of the British Chambers of Commerce says that people should expect it. The 'Brexit' has a huge impact on it, and it is hugely because of the uncertain nature of the move. People don't know what to expect with the UK's exit-therefore, instead of forging brave deals, most businesses elect to make decisions based on cautious moves.