Goldman Sachs slashes GDP forecasts in wake of Brexit vote

In its latest review on the UK economy post-Brexit published via Reuters, Goldman Sachs lowered Britain’s GDP forecasts in light of deteriorating terms of trade and tightening financial conditions.

Key Points:

Britain likely to enter a recession within the year

Expects Eurozone GDP over the next two years to average 1.25 % (vs. 1.5% before the vote)

For the US: expects GDP growth in the second half of 2016 to come in at 2% (vs. 2.25% forecast previously)

Goldman economist Jan Hatzius and Sven Jari Stehn noted, "We now expect the (British) economy to enter a mild recession by early 2017.”