UK growth to be 3 times as fast as Germany

BRITAIN’S economy will outpace the eurozone this year – and grow almost three times as fast as Germany’s, according to official forecasts.

The UK is expected to grow by 1.3 per cent in 2019, the European Commission said. This is ahead of 1.2 per cent growth expected in the single currency bloc.

And it is far better than the sluggish 0.5 per cent predicted for its largest economy Germany, which has been hammered by a US trade crackdown under Donald Trump and a slump in diesel car sales.

Italy is forecast to be the worst performer in the eurozone with growth of only 0.1 per cent as it barely avoids recession.

Although UK growth is expected to be much high than Germany’s, the commission pointed out that British business investment is suffering its worst run since the financial crisis – partly due to Brexit. It added: ‘In 2018, business investment fell for four consecutive quarters – the first such instance since 2009, culminating in a year-on-year fall of 2.5 per cent.

‘Survey evidence suggests this was largely due to the impact of uncertainty over the UK’s future trading relationship with the EU. Continuing uncertainty means business investment is likely to remain weak.’