FX.co ★ UK economists doubt positive outcome of Brexit

British Prime Minister Theresa May has said she is confident that Britain will not have negative consequences after leaving the EU. However, analysts are of a different opinion. According to their forecasts, the UK inflation will jump to 2.6% next year.
According to the new prime minister, the official process of leaving the European Union will start no later than March 2017.
Meanwhile, other officials and bankers do not expect positive outcome of Brexit. According to Anthony Browne, the chief executive of the British Bankers' Association, some financial groups will leave London by late December, while real problems for the UK business will start when Britain will leave the EU.
On the whole, experts believe Brexit will permanently weaken the UK economy. The report of the EY Item Club think tank reads that the UK inflation will rise to 2.6% next year, thus slowing consumer spending growth to 0.5%. Business investment is also forecast to fall by 1.5% this year and by more than 2% next year due to uncertainty surrounding Britain's future trading relationship with the EU.
As a result, this would cause UK GDP growth to drop sharply to 0.8% in 2017. Economists note that even London’s decision to make a free trade area will not help Britain’s economy after Brexit.
Meanwhile, the process of leaving may take more than a year. Formal negotiations on Britain’s withdrawal from the EU will start when Mrs May will invoke Article 50 of the Lisbon Treaty. In case it will be triggered in March 2017, Britain would be ultimately extricated from the EU by summer 2019.