S&P Slices Euro Zone and UK Growth Forecasts After Brexit Vote

Euro zone economic growth will take a knock in 2017 and 2018 because of the U.K.’s vote to leave the European Union (EU), S&P Global Ratings said on Monday.

“For the euro zone, despite the increased uncertainties and the hit to foreign demand resulting from Brexit, we do not at this point expect the recovery to stall. However, we estimate the Brexit effect will cost the euro zone 0.8 percent of GDP (gross domestic product) over 2017 and 2018,” the ratings agency said in a report.

CNBC

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam