UK Economic Outlook: Economic Prospects After Brexit

UK economic growth had already slowed from around 3 percent in 2014 to around 2 percent before the EU referendum due to slower global growth, but the vote to leave the EU is likely to lead to a significant further slowdown. UK growth is now projected to slow to around 1.6 percent in 2016 and 0.6 percent in 2017. The main reason for the slowdown will be a decline in business investment, particularly from overseas in areas like commercial property. But the EU vote has also focused renewed attention on the need for increased investment in the Northern Powerhouse to boost infrastructure, skills and innovation in the longer term.