‘Britain is fast becoming the sick man of Europe’ – experts debate Brexit data

Two former members of Bank of England’s interest rate-setting committee find little comfort in low productivity and rising inflation

Professor of economics at Dartmouth College, New Hampshire, and member of the Bank of England’s monetary policy committee from June 2006 to May 2009

Related: Brexit economy: sterling fall hits public finances and fails to boost trade

Related: Brexit economy: sterling fall hits public finances and fails to boost trade

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Brexit economy: sterling fall hits public finances and fails to boost trade

The latest monthly Guardian analysis uncovers signs amid the ongoing slowdown that pound depreciation may start to fade

The sharp fall in sterling triggered by the EU referendum result is having an adverse effect on Britain’s already weak public finances but has yet to bring about the expected improvement in the trade deficit, a Guardian analysis of the economic news of the past month shows.

In a period in which business confidence took a hit from the government’s loss of its overall majority in the general election, the Guardian’s monthly tracker found little evidence that the impact of a more competitive currency was offsetting a slowdown in consumer spending caused by dearer imports.

Related: How has Brexit vote affected UK economy? July verdict

Related: ‘Britain is fast becoming the sick man of Europe’ – experts debate Brexit data

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IMF cuts 2017 growth forecasts for UK and US

‘Tepid performance’ so far of UK economy and Trump’s failure to deliver tax cuts lead to downgrade to 1.7% and 2.1% respectively

The International Monetary Fund has cut its growth forecast for the UK economy this year after a weak performance in the first three months of 2017.

In its first downgrade for the UK since the EU referendum in June last year, the IMF said it expected the British economy to expand by 1.7% this year, 0.3 points lower than when it last made predictions in April.

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