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UK economy to slow over next two years – S&P

International rating agency S&P Global Ratings notes signs British economy is weakening and expects growth to slow over the next 2 years.

S&P predicted the UK GDP will slow from 1.8% in 2016 to 1.4% in 2017 and 0.9% in 2018, while the uncertainty related to the country's exit from the European Union (Brexit) leads to significant downside risks for this forecast.

Rising inflation due to the weakness of the national currency will negatively affect domestic spending (including consumer spending), but it will not provide exporters with the necessary support.

S&P does not expect the Bank of England will raise interest rates until mid-2019 and predicts a drop in U.K. real wages in 2017 and moderate increase in 2018.

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