Forecast: UK may slip into recession within 18 months

Baku. 3 August. REPORT.AZ/ The United Kingdom (UK) ‘has 50% chance of slipping into recession within 18 months. 

Report informs, the UK's National Institute of Economic and Social Research (NIESR) said.

"Inflation would increase to more than 3% for the first time in five years in late 2017 as the weak pound pushes up the price of imports and the government would be forced to borrow an extra £47bn in the next four years. According to the thinktank, economic growth would slow to 0.2% in the current quarter from 0.6% in the previous three months and stagnate for the rest of the year. We expect the UK to experience a marked economic slowdown in the second half of this year and throughout 2017", NIESR said on Wednesday.

Rain Newton-Smith, Director for Economics of the Confederation of British Industry(CBI), said: "The UK's SME manufacturers reported higher production, more staff hired and now expect to sell more of their world-class goods overseas over the next quarter, with a weaker sterling having a hand in this. But overall they do feel less optimistic and are scaling back some investment plans in machinery and plants.