LONDON (AP) -- The International Monetary Fund has lowered its 2017 growth forecast for the British economy, saying the impact of Brexit has weighed on the economy despite a strong global recovery.
The IMF said Wednesday it expected the British economy to grow by 1.6 percent this year, down slightly from its previous forecast of 1.7 percent.
It said the sharp drop in the value of the pound following Britain's vote in June 2016 to leave the European Union has pushed up inflation by making imports more expensive and that's squeezed incomes and consumption.
It also says that business investment has been weaker than expected due to economic uncertainty.
For 2018, the IMF maintained its growth forecast of 1.5 percent, but said relatively high inflation will continue to weigh on wages and spending.