Europe & Russia: Economic overview

October 2017

The UK’s economic growth will weaken this year and next, while growth in the euro area is also forecast to decline.

The UK’s economy is forecast to expand by 1.7% in 2017 and 1.5% in 2018, according to the latest forecast from the International Monetary Fund. Uncertainty around Brexit and the potential for a prolonged period of uncertainty are weighing on the country’s economic prospects. Challenges to Prime Minister Theresa May’s position continue to be a threat, raising the potential for a leadership change and another snap election. The government has announced plans for a cap on gas prices, which has been met with criticism by many in the industry. Although the government had called for an immediate implementation of the price cap as the country prepares for winter and wholesale prices rises, new legislation will need to be passed before the proposed cap can be fully rolled out.

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