According to a prediction from the European Commission, the Eurozone will outstrip the UK when it leaves the EU in 2019 and will have the lowest growth of any country in the bloc.
The forecast from Brussels believes that the UK growth will be at 1.1% in 2019, just ahead of Italy and far behind the euro area, which will be at 1.9%.
These predictions are actually worse than the figures included in the prediction they released in May for the UK.
The gloomy forecast is based on higher inflation on the economy, indicating that growth will stay subdued and lag behind the rest of the EU when the UK formally leaves the EU.
Investors are perturbed by Brexit uncertainty according to the EU’s economy commissioner, echoing previous from Europe’s largest management consultancy advising businesses not to invest in Brexit Britain.
On the contrary, predictions from the International Monetary Fund and Bank of England are slightly more optimistic, although both have lowered their forecast for GDP.
It’s noteworthy that the Commission has included the UK in its 2019 forecast despite the fact that it is unclear what the UK’s relationship will be with the EU at this stage.
A no deal scenario could cost the UK economy £400bn by 2030, according to a recent report.
Assessing the “technical assumption of status quo in terms of trading relations” creates the predictions.