TCA Financial: The International Monetary Fund (IMF) is set to downgrade its growth forecasts for the UK’s economy in the wake of the landmark Brexit vote. The IMF’s closely-watched World Economic Outlook report will likely also cut its projections for the global growth for the third time in 2016.
It is expected to cut the UK’s growth forecast to 1.7% from its last revision of 1.9% in April while 2017 growth could be cut to an anemic 1.4%, markedly lower than the 2.2% estimate of just three months ago.
The organization had originally predicted that a vote to leave the European Union would plunge the country into a recession but a decision by the government to abandon austerity and a plan to balance its budgets by 2020 in favor of a boost to infrastructure investment will likely underpin growth.
said, “The decision to avoid dragging out a Conservative Party leadership race until October was a sensible one and we think it’s definitely gone some way to heading off a crisis of confidence in the country’s political future,” said Colin Phipps, chief economist at TCA Financial, referring to the contest to replace former Prime Minister, David Cameron who resigned following the Leave vote.
Former Home Secretary, Theresa May succeeded Cameron last week after her only remaining rival in the race, Andrea Leadsom pulled out of the running.
TCA Financial says it remains of the opinion that the UK economy will face strong headwinds as the fallout from the Brexit vote continues to play out over the coming months. The Bank of England held off raising interest rates last week but gave a strong signal that monetary easing would be forthcoming when it next meets in August.

About TCA Financial:
TCA Financial is resolutely committed to helping our clients accumulate and preserve wealth by actively managing the deployment of their investment capital within the global financial markets. We have a proven, checkable track record of being able to accomplish this regardless of the prevailing macro-economic conditions because of our expertise and professionalism and because we know that markets, just like people, are all connected to varying degrees at varying times.