Economics

Brexit and Politics Loom Over U.K. After Tumultuous 2016

  • 2017 will bring start of formal Brexit talks, more uncertainty
  • Consumer spending and investment are forecast to weaken

Gilles Moec: Market Is Still in Denial on Brexit

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The U.K.’s long-predicted Brexit slump may finally arrive.

With the negotiations to exit from the European Union set to begin early next year, the political back-and-forth that slammed the pound this year will continue through 2017. Bank of England policy maker Ian McCafferty foresees a “slow-motion slowdown” as consumers face faster inflation, importers cope with higher costs and companies become more reluctant to invest.