Brexit slams brakes on British growth

Gross domestic product was expected to grow by only 1.4 percent next year -- sharply down from the prior estimate of 2.2 percent given in March.

Brexit slams brakes on British growth

World Bulletin / News Desk

Britain's economic growth will slow sharply next year, finance minister Philip Hammond told parliament Wednesday in the government's first budget statement since the nation voted to exit the European Union.

The nation's shock June 23 vote to leave the European Union will "change the course of Britain's history", Chancellor of the Exchequer Hammond said in his Autumn Statement exactly five months after the referendum.

Brexit "makes more urgent than ever the need to tackle our economy's long-term weaknesses", he added.

"That is slower of course than we would wish, but still equivalent to the IMF's forecast for Germany, and higher than the forecast for growth in many of our European neighbours including France and Italy," Hammond told lawmakers.

He noted however that the UK economy was predicted to have expanded by 2.1 percent this year, up from the government's previous estimate of 2.0 percent.

In a keenly-awaited budget, he unveiled a package of UK-wide investment projects, including the building of homes and road improvements.

Hammond also raised the country's minimum wage level and hiked tax thresholds to give workers more take-home pay.

Last Mod: 23 Kasım 2016, 17:01
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