Europe & Russia: Economic overview
Forecasts for weakened demand are hitting the prospects for economic expansion in major European economies.
The UK’s GDP growth rate is expected to fall to 1.8% this year, down from 2.2% last year. This trend is set to continue, with growth of just 1.1% forecast for next year. The political uncertainty over the UK’s exit from the EU is weighing on the country’s economy. Although formal proceedings for starting negotiations on leaving the union have now been scheduled for March, it is still unclear what the UK is seeking in its new relationship with the EU in terms of the single market and the free movement of people. The value of the pound continued to fall during the first half of October. Although the reduced growth has not yet hit the UK’s gas demand, imported gas has become more expensive as the pound has fallen against the euro.