Leading economists from across the UK have ‘downgraded’ their Gross Domestic Product (GDP) growth forecasts, following uncertainty about future trade arrangements and investment prospects.
The comments come after Chancellor George Osborne spoke up this morning in an attempt to reassure financial markets that Britain is “ready to confront what the future holds,” following the result of last week’s European Union (EU) Referendum.
Capital Economics reportedly downgraded its economic forecast for the remainder of 2016, from just above 2 per cent to 1.5 per cent.
IHS Global Insight also cut their GDP growth forecasts from 2 per cent to 1.5 per cent for 2016, and from 2.4 per cent to just 0.2 per cent for 2017.
Furthermore, Fitch said that Britain’s decision to leave the EU will be “credit negative for most sectors in the UK.”
The body cast doubts around future trade arrangements, investment prospects and general uncertainty.
Despite economists’ fears, George Osborne has said: “Growth has been robust and employment is at a record high. Our economy is now about as strong as it could be to confront the challenge the country now faces.”
“It is inevitable that Britain’s economy is going to have to adjust to the new situation we find ourselves in.
“It’s my country right or wrong and I intend to fulfil my responsibilities to the country,” he added.