Trade War woes, Brexit problems culprit in growth forecasts cut for 2019-2020: UK firms
The British Chambers of Commerce on Monday cut its forecast for economic growth for the year 2019 and 2020. This is due to the perennial trade problems caused by the U.S.-China trade conflict and the looming Brexit and its apparent economic repercussions in the European Union.
The BBC cut its forecast for economic growth this year to 1.2% from its original 1.3% prediction last June and even decreased 2020 economic progress to 0.8% from 1.0%.
“Our latest forecast shows a number of warning lights are flashing for the U.K. economy, even if we are able to avoid a messy and disorderly exit from the EU in just a few weeks’ time,” said the Director-General of BBC,” Adam Marshall.
The European economy was hurt when the U.S.-China trade war took its toll where Germany fell victim as an exporter.
Meanwhile, the unsettling Brexit is causing turmoil in the business investment and gains in productivity according to an economist of BBC.