Tariff impact investment Ernst & Young slashed its economic growth forecast for the UK by a large margin

According to the Smart Finance APP, the Ernst & Young Project Club predicts that due to the comprehensive tariffs imposed by US President Donald Trump, the economic growth rate of the UK in 2026 will be only half of what was previously expected. This influential forecasting agency warned that shrinking exports and further declines in household spending will stifle the strong growth momentum previously predicted. The Ernst & Young Project Club has revised its forecast for UK economic growth in 2025 from 1% to 0.8%, and for 2026 from 1.6% to 0.9%. Business investment is expected to be particularly hard hit, with virtually no growth this year. Exports are expected to decline in the next two years.