Europe & Russia: Economic overview

February 2017

Further political upheaval is weighing on the economic outlook for Europe’s major markets.

The UK’s economy is forecast to grow by 1.5% in 2017 and by 1.4% in 2018, down from the 2.0% annual growth seen in 2016. The uncertainty caused by the country’s vote to leave the EU will continue. The process of leaving the EU has already been met with legal challenges and caused political turmoil. Although some elements of the procedures have been clarified, the negotiations required to formalise the country’s exit from the EU could be delayed further. The fall in the value of the pound has pushed up the cost of imports into the UK, including gas.