The UK economy will grow by 2.4% in 2015, well below the 3.1% growth expected this year, forecasting group EY Item Club has said. It says the forthcoming election and accompanying political uncertainty will hold business back from investing.
Growth will also be constrained by worries about the eurozone and the Ukraine conflict, EY Item Club says. The 2.4% figure is well below forecasts issued by the Bank of England, the CBI and the International Monetary Fund.
Last week, the Bank’s chief economist, Andrew Haldane, said he was downbeat over the UK economy because of weaker global growth, low wage growth and financial and political risks. He said interest rates should remain low to avoid long-term economic stagnation.
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