NIESR Expects Strengthening of UK Economy, Despite Brexit
The National Institute of Economic and Social Research of Great Britain (NIESR) predicts that the sixth largest economy of the world will grow over the next two years, mainly due to the strength in the world economy, despite withdrawing from the EU. NIESR said that gross domestic product will grow by 1.9% in 2018-2019, compared with its November forecasts of 1.7%.
Despite the lagging behind global growth, the British economy did not slow down as much as predicted earlier, after the voters' decision to leave the European Union. It is projected that the world economy will expand by 3.9% and 3.8% in 2018 and 2019.
NIESR said that Britain's economic growth is helped by a drop in the value of the pound, which contributed to the growth of British exports. It is also expected, that London will secure a deal with Brussels, which practically does not violate trade with the bloc. But still, if the UK resorts instead to the rules of the World Trade Organization regulating its trade with the EU, the country's economy may fall 7%.