The Brexit uncertainty continues, after the doubts arose about the UK economic strength and political instability. The Great Britain Pound is likely to dip five month low on Monday and is expected to get stabilized at 1.2540 on Tuesday.
The British Chambers of Commerce said that the firms are putting the maximum resources into the contingency plans which is stockpiling but not sustainable. Also said that the companies should be investing in measures that aim at economic growth and stated that growth would be more depressed in 2020 and 2021.'
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The head of economics at British Chambers of Commerce said “The revisions to our forecast suggest that the UK economy is likely to remain on a disappointingly subdued growth path for some time to come,”
The downward pressure on business activity and investment intentions from the unwinding of stocks is likely to be exacerbated by increasing cost pressures and Brexit uncertainty, slowing overall economic growth across the forecast period.”
He added that, “The deteriorating outlook for business investment is key concern as it limits the UK productivity potential and long-term growth prospects."
“The disruption caused would increase the likelihood of the UK weak growth trajectory translating into a more pronounced deterioration in economic conditions.”