Business group CBI has predicted that economic growth in the United Kingdom in 2018 will be “steady but sluggish” after a “timid” 2017.
Due to Brexit uncertainty, spending per household will remain limited due to pressure from squeezed wages.
The CBI believes that the quarterly GDP growth rate until the end of 2019 will be almost half the growth rate in 2013, at 0.3%.
The report from CBI estimates that GDP will increase by 1.5% in 2017 and 2018, falling to 1.3% in 2019, the year when it is expected that the UK will formally leave the European Union.
Rain Newton-Smith, the CBI's chief economist, said: "After a timid 2017, UK economic growth is set to remain steady but sluggish, with less pep than we've seen over the past few years."
"The lacklustre rates of growth that we're expecting come against the backdrop of several years of persistently weak productivity, which is pushing down on the UK's supply potential."
"The government's newly announced Industrial Strategy can help address this challenge and boost living standards, but the recent White Paper is just a first step - consistency and determination is needed to make this a long-lasting success."
Alpesh Paleja, the CBI’s principal economist, said that now is a good time for businesses to look at exporting opportunities across the world, giving the strength of the global economy.
"The global economy is firing on all cylinders, with the upturn in growth becoming more broad-based. We expect this to continue in the near-term, which will provide a supportive backdrop for trade and economic growth in the UK.”
Given these exporting opportunities, it doesn’t seem all that glum for Brits. A recent study mused that it is possible that the UK economy is back on track last month.