Europe & Russia: Economic overview

July 2017

Political turmoil continues to cloud the UK’s economic outlook, with growth set to lag behind major European markets this year and next.

The UK’s economy is expected to expand by 1.6% this year, down from 1.8% last year. The latest outlook from the OECD predicts growth will continue to be weak in 2018, at just 1%. This means the UK’s GDP growth will lag behind other major economies in Europe next year, with the exception of Italy, where GDP is forecast to expand by just 1% this year and 0.8% in 2018. The UK government under Prime Minister Theresa May is facing uncertain times, and how long the agreement between the Conservatives and the Democratic Unionist Party will last is open to question. With major issues surrounding the country’s future in the EU single market still unresolved, the uncertainty caused by Brexit is continuing to weigh on the economy.