EU leading economies will grow more than UK in 2018 as lack of clarity linked to Brexit keeps affecting consumer confidence and chases away investments, as OECD’s recent predictions say.
Britain’s GDP growth will dip to 1% in 2018, from 1.6% of this year, which coincides with the previous prediction of OECD, and Italy’s state revenue will go up 1.2% next year, which is 0.4 percentage points higher than the June’s prediction. Germany will see 2.1% growth and France - 1.6%, which is expected due to a rebound in EU’s activity.
However, OECD’s data shows UK’s jobs market kept steady following a reduction in unemployment to under 4.5% and employment reaching top levels. It also said that low productivity and little wage rise hold.
Sterling fall has slightly brought up the outlook for exports though at the same time spurred inflation, decreasing buying power and individual consumption.
Japan, being one of the countries with the lowest growth among G7 states in the past 25 years, is going to improve its growth, which will be better than Britain’s in the next year, this follows the review of the financial prospects for the coming year by the world’s richest countries club.