The European commission enters key Brexit talks with the government with the eurozone economy in its best shape for a decade and activity in the UK weaker than expected six months ago.
In its half-yearly health check, the commission sharply cut its forecast for UK growth this year and said it was likely to continue struggling in 2018 and 2019 even on the assumption that trade would not be disrupted by its departure from the EU.
Forecasts produced by economists in Brussels said the UK economy would grow by 1.5% this year rather than the 1.8% pencilled in when the last assessment was made in May. The International Monetary Fund is expecting UK growth of 1.7% this year, while the Organisation for Economic Cooperation and Development is forecasting growth of 1.6%.
