World Economy

UK Lending to Shrink

UK Lending to ShrinkUK Lending to Shrink

Business loans in the UK will shrink to the lowest in more than a decade in the next couple of years, as weaker economic prospects in the aftermath of the vote to leave the European Union damp demand, according to the EY ITEM Club. Total lending to companies will contract 1.8% next year and another 1% in 2018 before finally recovering the following year, the organization said in a report released on Monday, Bloomberg reported. By then, the total stock of business loans will have dropped to £376 billion ($497 billion), the lowest since 2005, EY said.