Top eurocrats warned that country’s European Union divorce has resulted in a continued slowdown of business investment for the fourth quarter in a row. In the Commission’s spring economic forecast, Britain’s annual gross domestic product slumped from 1.8 percent in 2017 to 1.4 percent a year later. Britain’s GDP is expected to once again fall to 1.3 percent for both 2019 and 2020, according to the Commission’s figures.

Brexit was at the heart of the blame as business investment fell for four consecutive quarters – the first time since 2009.

Britain’s poor performance is based largely on the impact of uncertainty over the UK’s future trading relationship with the EU, according to the Commission survey.

Brussels also expects the risk of a no deal Brexit to play a major role in disrupting continental economies.

Commission banking chief Valdis Dombrovskis said: “Within Europe, any deviation from the technical assumption of unchanged trade relationships between the UK and the EU that underlies these forecasts, and in particular a ‘no deal’ Brexit, would dampen economic growth, particularly in the UK but also in the EU27, though to a minor extent. 

“Within Europe, any deviation from the technical assumption of unchanged trade relationships between the UK and the EU that underlies these forecasts, and in particular a ‘no deal’ Brexit, would dampen economic growth, particularly in the UK but also in the EU27, though to a minor extent.”

According to Brussels, Britain is expected to feel the brunt of any potential hard Brexit and claims the EU is well equipped to handle any disruption.

The Commission’s spring forecast reads: “Outside the euro area, an escalation of trade conflicts or persistent uncertainty surrounding trade policies, a ‘no deal’ Brexit, a sharper than expected slowdown in China, and a sharper or longer slowdown in export demand, constitute major risks. 

“Within Europe, any deviation from the technical assumption of unchanged trade relationships between the UK and the EU that underlies these forecasts, and in particular a ‘no deal’ Brexit, would dampen economic growth, particularly in the UK but also in the EU27, though to a minor extent.”

But the forecast warns Germany’s influential motor vehicle industry is experiencing a downturn, with Brexit partly to blame.

“Outside the euro area, car exports to the UK have been weak throughout 2018, partly reflecting the Brexit-related uncertainty,” the forecast adds.

Brussels has warned that the slump in the EU’s automotive sector has significantly hampered Germany’s GDP forecasts.

“In Germany, GDP would have been 0.6 percent higher without such a fall in the automotive sector,” the report says.

According to the figures, Germany’s GDP slumped from 2.2 percent in 2017 to 1.4 percent in 2018. But most shockingly, a further slide to 0.5 percent is expected for 2019.

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