Barclays’ Merrill Lynch analysts say UK to lose £1.5bn by 2030
Barclays analysts say the UK will lose £4.5 billion in GDP by 2030 due to the economic downturn, the Brexit vote and rising inequality, Bloomberg reports.
In a report, Barclays’ Global Investors & Wealth Management said the UK’s economy would shrink by a third over the next decade due to falling investment and the negative impact of Brexit on consumer spending.
“Our forecasts are for GDP growth to fall by 4.5 per cent by 2030, due to slower growth in investment, and a higher than expected decline in the value of consumer goods and services,” the analysts wrote.
“While there is no sign of the UK economy recovering from the downturn, there is a clear opportunity for the country to return to its growth potential through higher-growth and more diversified economies, particularly China.”
While the analysts believe the UK could regain its pre-Brexit growth by 2035, it added that the “vast majority of the impact” will fall on younger workers and the “under-35 generation.”
Barclays’ report comes amid increasing concerns over Britain’s economic outlook, as the economy slows sharply and the unemployment rate hits record highs.
In a letter to Barclays CEO, Sir Andrew Haldane, Prime Minister Theresa May said that the UK has become “an economic powerhouse and has achieved more than any other member state in Europe,” Bloomberg reports, but she has also called for more fiscal austerity.
The Prime Minister said on Thursday that the British economy will continue to expand, despite the UK leaving the EU.
She also said that she wants to build on the economic recovery from the Brexit referendum, which led to a record jump in the number of people seeking work, according to Bloomberg.