Moody’s cuts growth forecasts for UK and Eurozone

According to media reports, Moody’s cut its growth forecasts for the UK and eurozone following the kingdom’s vote to exit the EU. The credit agency expects the UK economy to grow by 1.5% this year and 1.2% in 2017, compared with its earlier growth estimates of 1.8% and 2.1%, respectively. For the eurozone, meanwhile, Moody’s cut its 2016 and2017 economic growth estimates to 1.5% and 1.3%, respectively from its previous projections of 1.7% and 1.6%.

Moody’s expects heightened uncertainty, diminished confidence and lower spending and investment to result in weaker growth in the UK. According to the agency, the country will have to renegotiate its trade relations with the EU.