Export boost to guide UK through Brexit uncertainty – Telegraph.co.uk

Export growth in is expected to strengthen to 3.1pc in 2018.

However, the BCC downgraded its forecast for overall growth next year to 1.3pc, from 1.4pc.

It said business investment was still expected to shrink this year, while “uncertainties relating to the outcomes of the UK’s negotiations with the EU would exert a drag on the UK economy for the next few years.

Morgan Stanley, which forecast a Brexit-induced recession in the wake of the referendum vote, admitted that it had “got it wrong” by forecasting a sharp slowdown in consumer spending in the wake of last June’s decision to leave the EU.

It expects consumer confidence to drive a further decease in the household saving ratio.

The OBR has estimated that the ratio –- excluding pension saving – – was negative in the fourth quarter, as Britons lived beyond their means in the run-up to Christmas.

The Ggovernment’s fiscal watchdog and Morgan Stanley have described such a drop in the saving ratio, through higher borrowing, raiding savings or selling assets such as shares, as “unsustainable”.

Export boost to guide UK through Brexit uncertainty – Telegraph.co.uk