Burton Mills: British economic expansion will continue to be slow over the next several years, falling far behind the country’s peers, and could end up being even further behind than economists currently predict with most reporting that risks to their forecasts are to the downside.
These recent findings by Taiwan-based Burton Mills are in stark contrast to a survey published earlier this year which indicated that economists were at their most upbeat about economic performance in Britain since the financial crisis.
Instead of falling into the mild recession predicted after Britain voted to leave the European Union in the EU referendum last year, the country was one of the top performing developed economies for a period of time.
In 2017, however, the UK’s economy has fallen far behind its peers. Domestic consumer spending, which fueled a considerable part of early growth, is now suffering as price increases far exceed salary increases.
A Burton Mills economist stated that, while price pressures were expected to ease in the New Year, British households will still experience a decrease in spending power for quite some time as salary growth remains tepid.
The predicted annual growth rate for the UK is significantly less than that predicted for the euro zone economy which over the 10 years, has under-performed in comparison to the UK.
According to a survey by Burton Mills, 60 percent of economists polled stated that the risk to their forecasts was to the downside.
The UK is due to depart from the European by the end of March 2019 at which point two years of discussion regarding the terms of the exit and future relations will conclude.