Forecast Growth: Growth Forecast and Treasury Modelling

forecast growth: The group of economists, which is the only non-government forecasting organisation to use the Treasury modelling of the economy, said it had downgraded its growth forecast for this year and next as a consequence, according to The Guardian. It forecast growth of 1.3% for the whole of 2018, down from a previous estimate of 1.4%. This would be the worst annual period for growth since the financial crisis. After official figures revealed zero growth in GDP in August, the EY Item Club said the economy would struggle to recover in the final months of the year owing to the increasing likelihood of Britain crashing out of the EU in less than six months' time. It also downgraded the outlook for the second quarter running. The government's economic forecaster, the Office for Budget Responsibility, last week raised the prospect of a no-deal scenario triggering border delays, companies and consumers stockpiling food and other supplies, and aircraft being unable to fly in and out of Britain. Frictionless Brexit trade deal would bolster budget Hammond Read more EY Item Club forecast a modest recovery next year if there was a smooth Brexit deal, with growth of 1.5%, down from its previous estimate of 1.6%. Economists have said failure to reach such a deal could significantly harm the UK economy, with the International Monetary Fund warning of dire consequences for growth. (news.financializer.com). As reported in the news.