World Economy

47% Brits Expect Economy to Shrink

47% Brits Expect Economy to Shrink47% Brits Expect Economy to Shrink

Almost half of Britons believe the UK economy will contract in the next year as a result of the Brexit vote, according to a poll.

A third of households (33%) expect their financial situation to be worse-off this time next year and 47% believe the wider economy will contract as a result of the decision to leave the European Union, the Greene King leisure spend tracker found, reported.

This is most keenly felt among young adults, with 62% of 18 to 24-year-olds and 53% of 25 to 34-year-olds expecting the economy to decline. Just 8% expect an improvement in their prospects, the report says.

The average British household spent £209 ($276.5) on out-of-home leisure last month, a 2% or £3 increase year-on-year, the tracker reveals.

Greene King group marketing director Rob Rees said: “This month’s Greene King leisure spend tracker reveals that the uncertainty created by Brexit is worrying Brits of all ages.

“The impact of Brexit on personal finances is a concern but, in fact, UK adults are more pessimistic about the prospects of the wider economy and the potential threat of recession later this year.”

Meanwhile, Britons are taking advantage of super-low interest rates and the slowdown in property prices to borrow more, according to the latest data from the British Bankers’ Association, Business Insider reported.

The numbers show that gross mortgage borrowing rose by 6% in July 2015, compared to the previous month, hitting £12.6 billion ($16.6 billion).

Britons are also taking on more debt. The data shows that consumer credit grew by 6% on an annual basis and especially in the case of personal loans and overdrafts.