ABN Amro slashes UK 2017 GDP forecast after Brexit vote

29 June 2016, 19:41
Sherif Hasan

ABN Amro sees slower British growth

The economists at ABN Amro see 2016 relatively unchanged at 1.5% compared to 1.6 but a prolonged period of uncertainty will hurt 2017 growth badly. They now forecast growth at 0.5% next year compared to 2.5% previously.

They see a moderate recession hitting around the turn of the year as EU negotiations move slowly.

They expect the BOE to cut rates by 25 basis points and launch a new QE program including corporate bonds, equities and gilts.

The weakness will also spread into the Eurozone where they see growth in 2017 at 1% now compared to 1.6% before.

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