British economic growth figures expected to be tame

British economy GDP data
Photo: Reuters
British economy GDP data
Photo: Reuters

The Office of National Statistics is to publish preliminary data on the UK’s economic growth for the third quarter today. It will likely show a lacklustre performance which is due to continue into 2019 as investors remain cautious over the prolonged Brexit negotiations.

The forecast is expected to confirm GDP growth of 0.3%, a repeat of the last two quarters which were the weakest since the first six months of 2012. The pound’s 15% depreciation since the 2016 Brexit vote has seen the consumer price index rise and business confidence sink. This comes ahead of a probable interest rate hike by the Bank of England next week to maintain inflation near the 2% target.

With many Conservative’s pushing for “Brexit now”, May’s government cannot let OECD pessimism over the slim prospects of a deal hamper the negotiations, which could see the economy take a £40bn slash by 2019 if no deal is reached.

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