UK Industry: Brexit, weak global demand to hurt UK in 2020
|The Confederation of British Industry (CBI) and a manufacturing trade body, Make UK, have made downward revisions to their 2020 UK growth forecasts amid looming Brexit risks and bleak global economic outlook, per Reuters.
Key Quotes:
The CBI on Monday predicted economic growth of 1.3% this year and 1.2% in 2020, followed by a pick-up to 1.8% in 2021, assuming Johnson reaches a trade deal with the EU that leads to no tariffs and little divergence from EU rules.
CBI chief economist Rain Newton-Smith said: Alongside perennial Brexit uncertainty, (businesses) are also contending with softer global demand. A no-deal Brexit would put the brakes on UK growth and realise businesses’ worst fears.
Make UK halved its forecast for manufacturing growth next year to 0.3% from 0.6%, though it kept its forecast for growth in the overall economy in 2020 unchanged at 1.4%, up from 1.3% this year.
Export orders have increased slightly this quarter, indicating greater confidence from foreign customers about purchasing UK goods as concerns about an end of year no-deal Brexit fade, Make UK’s chief executive, Stephen Phipson, said.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.