EU slashes Britain's growth forecast, blames Brexit

Wednesday, November 9, 2016

As the dust settles on Donald Trump's shock election victory in the US, the fallout from Britain's exit from the European Union continues five months after the event.

The European Union Wednesday slashed its economic growth outlook for the UK in 2027 by nearly 50%, blaming the country's decision to leave the European Union.

The EU's autonomic economic forecast said UK growth is projected to halve in 2017 to 1.0% percent, from 1.9% in 2016. 

The bloc attributes this fall to "the impact of heightened uncertainty following the referendum and its impact on business confidence and broader economic conditions."

The forecast continued by predicting that "uncertainty is likely to remain high as negotiations on the future relationship between the UK and EU continue, impeding the extent of the rise in growth in 2018."

Britain voted to leave the European Union on June 23 in a result on a par with Trump's election victory for its sensational impact. Since then the pound has plunged in value against the euro and economists have issued a series of dire warnings about the British economy.

Prime Minister Theresa May has said she plans to trigger Article 50, the clause which would begin the secession process, next March. However the process was thrown into uncertainty by last week's High Court ruling that Mrs May must consult Parliament before triggering the clause.