The International Monetary Fund said Wednesday it expects growth in the U.K. economy to slow to around 1.5% in 2018, reflecting weakening business and consumer spending as a result of the uncertainty surrounding the U.K.'s decision to exit the European Union.
In its annual health check of the U.K., the fund said that "despite a strong recovery in global growth and supportive macroeconomic policies, the impact of the decision to exit the European Union has weighed on private domestic demand."
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The IMF added that the economic outlook depends in part on progress in Brexit talks between Brussels and London.
"Faster-than-expected progress towards a mutually beneficial economic outcome could buoy confidence. On the other hand, a breakdown in discussions could lead to a disorderly exit from the EU and sharp falls in asset prices," the fund said.
Write to Jason Douglas at Jason.Douglas@wsj.com
(END) Dow Jones Newswires
December 20, 2017 05:56 ET (10:56 GMT)