The biggest financial firms in the world have warned that the economic growth of the United Kingdom will lag behind all the other advanced countries in the G7 this year.
Nearly three-quarters of the 100 senior executives who were surveyed said that they worry that the economic growth of the United Kingdom will be weaker in 2018 compared to any other advanced economy – a dramatic worsening of the sentiment as compared to a year ago when only 23 percent had that view.
The majority of bosses at banks, as well as insurers, private equity firms, and asset managers expressed their concerns regarding the prospects of the economy for the coming year.
Half of the executives who were surveyed said that they expect the growth of the United Kingdom to stay at the levels last 2017, while 29 percent anticipate it to worsen and a fifth of those surveyed believe that the growth will improve.
Brexit was the most generally cited risk that is dragging on the economic prospects of the United Kingdom, with 55 percent saying that they are concerned about it.
Over a quarter (28 percent) said that it is the most important risk that their company will experience over the coming year, while 24 percent said that they are now less optimistic about leaving the European Union than they were a year ago.
The GDP growth of the United Kingdom slowed to 0.4 percent during the last quarter of last year, implying a 1.7 percent expansion for the year – the smallest among the G7.
The head of financial institutions at Lloyds Bank, Robina Barker-Bennett, said that the financial services sector was a critical bellwether for the economy of the United Kingdom.
“Fears about Brexit are looming large as the final countdown begins to March 2019, but our survey suggests that the UK economy will prove to be resilient and that it will come through the challenges of the next few months relatively unscathed.
“There is, however, a real risk that our growth will be slower this year than in all other advanced nations, and that we will fall to the back of the G7 pack.”