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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
