EU cuts forecasts for British economy as Brexit talks loom

February 13, 2017 at 5:01 a.m. | Updated February 13, 2017 at 5:15 a.m.

by Associated Press

A youngster sightseeing with her family performs a gymnastic move on the south bank of the River Thames back dropped by the Houses of Parliament in London, Wednesday, Feb. 8, 2017. Britain's House of Commons is set to approve a bill authorizing the start of exit talks with the European Union — a major step on the road to Brexit. The bill sailed through an earlier vote last week 498-114 and is very likely to pass its final Commons test Wednesday evening. (AP Photo/Matt Dunham)
A youngster sightseeing with her family performs a gymnastic move on the south bank of the River Thames back dropped by the Houses of Parliament in London, Wednesday, Feb. 8, 2017. Britain's House of Commons is set to approve a bill authorizing the start of exit talks with the European Union — a major step on the road to Brexit. The bill sailed through an earlier vote last week 498-114 and is very likely to pass its final Commons test Wednesday evening. (AP Photo/Matt Dunham)

BRUSSELS (AP) - The European Union is downgrading its forecasts for the British economy in the wake of the Brexit vote but paints a more optimistic picture for the bloc as a whole.

In its Winter Economic Forecast, the EU says that for Britain, "economic growth is projected to moderate in 2017 and weaken further in 2018," largely coinciding with the period during which the U.K. is to negotiate its divorce terms with the 27 other EU nations.

While British economic growth is forecast to slump from 3.1 percent in 2014 to a projected 1.2 percent next year, EU growth is expected to go the other way, from 1.6 percent in 2014 to 1.8 percent in 2018.

The report said the unclear intentions of U.S. President Donald Trump heightened uncertainty.

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