STRONG ties with the Eurozone mean that British growth will be hit by the forecast slowdown in the 16-country currency union, according to Ernst & Young’s latest quarterly Eurozone Forecast (EEF) published today.
“Our latest forecast shows the UK growing by 1.6 per cent this year and 2.1 per cent next year. However the heightened uncertainty surrounding the global recovery has led to more downside risks for the UK since the summer,” said Marie Diron, senior economic advisor to the EEF.
The EEF predicts growth to fall back sharply in the second half of 2010 and remain weak for the foreseeable future – growth of just 1.4 per cent is forecast for 2011.
The EEF thinks it unlikely that even a robust German economy will shield the Eurozone from its difficulties.