Moody’s confident UK will avoid recessionStaff Writer | August 19, 2016
Moody’s expects there to be modest growth in the UK economy, with forecasts now looking more positive, just two months after the Brexit.
Britain Limited Brexit-related spillovers
Previously, it had estimated the UK economy to grow 1.8 per cent in 2016, and 2.1 per cent next year.
These findings come after the National Institute for Economic and Social Research predicted the British economy would decline by 0.2 per cent between July and September this year.
NIESR also warned there is an “evens” chance of the UK dipping into a recession by the end of 2017.
Moody’s expected “limited” Brexit-related spillovers into the euro area. However, the report predicted some deterioration in the eurozone and maintained its growth forecast at 1.5 per cent for 2016 and 1.3 per cent next year.
Moody’s Investors Service stated growth in advanced economies will remain at low levels, but will be stable. ■