Europe & Russia: Economic overview

November 2016

Uncertainty is clouding the UK’s economic outlook, but stronger levels of growth could be achieved elsewhere in Europe this year.

The UK’s GDP grew by 2.2% in 2015 and is forecast to expand by 1.8% in 2016 and just 1% in 2017. The uncertainty caused by the country’s vote to leave the EU is weighing on its economic prospects. Questions about the country’s future relationship with the EU and its position in the single market have yet to be resolved. The government is also facing legal challenges to its plan to trigger Article 50, which formally begins the process to leave the union. Despite the outlook for reduced growth, the UK’s gas demand has increased on an annual basis in recent weeks. Colder weather, combined with strong offtake from the power sector will support growth in the UK’s gas demand over the coming month.