Thus, the GDP growth for the euro area is estimated at 1.7% growth for this year, while for next year, the economy is seen slowing to a pace of 1.6%, as Brexit hampers investment and export flows in the region.
As far as the UK is concerned, resumed political stability, a weaker currency and the Bank of England’s policy response look to have stabilised activity, after confidence fell sharply in the wake of the vote, and now the British economy is expected to exhibit significant resilience post-Brexit. That may be sufficient for GDP to avoid a modest contraction.