Major banks in the city of London reduce their forecast for growth in the UK in 2017, with many warning of recession.
Barclays Capital predicts that UK GDP will shrink by 0.5 percent in 2017. In June, before the referendum took place, it had forecasted growth of 1.9 per cent.
Other banks such as Citigroup, JP Morgan, Goldman Sachs, Royal Bank of Scotland and Bank of America Merrill Lynch have also all dramatically reduced their predictions.
According to the index published monthly by HM Treasury, Bank of America Merrill Lynch had forecast a 2.3-percent growth, and now predicts a just 0.2-percent one.
After the Brexit vote in June, the pound fell to its lowest level in 31 years, around $1.3120, its lowest level since mid-1985. Nearly $3 trillion was also wiped off the value of world stocks.
International Monetary Fund has also made their predictions, asserting that Brexit causes “substantial” increase in economic, political, and institutional…