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Brexit’s Negative Impact on UK Economy Unchanged Despite 1.4% Growth in 2017

© REUTERS / Heinz-Peter Bader/File PhotoA flag with the Organization of the Petroleum Exporting Countries (OPEC) logo is seen before a news conference at OPEC's headquarters in Vienna, Austria, December 10, 2016
A flag with the Organization of the Petroleum Exporting Countries (OPEC) logo is seen before a news conference at OPEC's headquarters in Vienna, Austria, December 10, 2016 - Sputnik International
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The Organization of the Petroleum Exporting Countries (OPEC) forecasts that the Brexit will have negative effect on the UK economy.

MOSCOW (Sputnik) — The Organization of the Petroleum Exporting Countries (OPEC) upheld its forecast of a severe negative effect on the UK economy due to leaving the European Union, despite the revised economy growth forecast of 1.4 percent in 2017, the cartel said Wednesday in a report.

"The underlying assumption of a severe negative impact on the UK economy stemming from Brexit has not changed. But it seems that the fallout will be spread over a longer time horizon and may be counterbalanced by governmental support, at least to some extent. Hence, the 2017 growth forecast was lifted to 1.4% from 1.3% but is still significantly lower than growth in 2016 of 1.8%," the organization's March report read.

So far, the UK economy has been benefiting from a weakening pound and improved competitive position, which has boosted exports and increased domestic consumption, OPEC said.

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