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Morgan Stanley Economists Join Goldman Revising U.K. Outlook

  • U.K. will resist mild recession, Morgan Stanley predicts
  • Goldman Sachs revised up forecast for 2017 growth on Monday
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Photographer: Simon Dawson/Bloomberg
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Morgan Stanley and Credit Suisse Group AG followed Goldman Sachs Group Inc. in predicting the U.K. economy will prove stronger than economists anticipated in the immediate aftermath of the vote to leave the European Union.

Scrapping its previous forecast of a recession, Morgan Stanley said in a report on Tuesday it now expects the economy to grow 1.9 percent this year rather than 1.2 percent. The Goldman Sachs team said on Monday it projects growth of 0.9 percent next year, faster than the 0.2 percent it previously penciled in, while Credit Suisse’s said it no longer sees the economy contracting in 2017.