MOSCOW (Sputnik) — The Organization of the Petroleum Exporting Countries (OPEC) upheld its forecast of a severe negative effect on the UK economy due to leaving the European Union, despite the revised economy growth forecast of 1.4 percent in 2017, the cartel said Wednesday in a report.
"The underlying assumption of a severe negative impact on the UK economy stemming from Brexit has not changed. But it seems that the fallout will be spread over a longer time horizon and may be counterbalanced by governmental support, at least to some extent. Hence, the 2017 growth forecast was lifted to 1.4% from 1.3% but is still significantly lower than growth in 2016 of 1.8%," the organization's March report read.
So far, the UK economy has been benefiting from a weakening pound and improved competitive position, which has boosted exports and increased domestic consumption, OPEC said.
