Gloomy growth projections cloud hopes for UK economy

Charles Dumas, Chief Economist, TS Lombard About 1.5 per cent, vs. US and EA both 2-2.5 per cent. The UK needed to rebalance after the 6 per cent-of-GDP current account blowout under George Osborne, and the Brexit vote secured the necessary devaluation, cutting real consumer incomes and thus spending; but Brexit uncertainties are also inhibiting the capex response to the stronger competitiveness and profitability.
Michelle Lam, Senior Economist, TS Lombard I expect the UK to grow at 1.6 per cent in 2018. That is a tad faster than 2017, but still slower than the euro area and the US. Strong global growth, slower pace of austerity and an end to real income squeeze are reasons why I think growth of the UK economy will hold up next year.