UBS AG is claiming that the U.K. economy is heading for near-stagnation GDP growth. In an article from Bloomberg,
Economists led by Pierre Lafourcade at Switzerland’s largest bank said their new model strips out volatility in data to show growth has “softened substantially since the beginning of the year” and is headed “close to zero in the near future.”
You may ask what's different in this UBS model; well according to Lafourcade:
The “striking feature” in his index is its decline since 2014, the post-Brexit steadiness and subsequent drop, all of which are masked in the quarterly gyrations of reported GDP growth.“On the basis of the factor’s recent trend, growth seems headed only in one direction -- south,” he said.
What do you guys think the future of the U.K. economy looks like?
