EU upgrades UK growth forecast for 2017 but draws a dismal image for UK future

This AFP file photo taken on February 1, 2017, shows the Elizabeth Tower, commonly known as Big Ben, and the Houses of Parliament, pictured by the River Thames in London.

The European Union acknowledges that the damaging impact of Brexit will be less severe than originally thought.

The European Commission’s Winter Economic Forecast released on Monday, contained speculations about the British economy’s future, upgrading the UK growth forecast for 2017.

Based on the new forecast, the UK economy will expand by 1.5 percent this year rather than just 1 percent as estimated in November.

The 28-nation bloc still painted a gray image of Britain’s economy due to a decision to leave the EU.

The 1.5 figure still marks a sharp drop in UK growth, registered 3.1 percent in 2014 and is expected to slump even lower to 1.2 percent in 2018.

"Economic growth is projected to moderate in 2017 and weaken further in 2018," said EU financial affairs chief Pierre Moscovici (pictured above).

Meanwhile, the EU’s economy was expected to become better, with growth set to rise from 1.6 percent in 2014 to 1.8 percent in 2017 and 2018.

"The European economy has proven resilient to the numerous shocks it has experienced over the past year," said Pierre. "Growth is holding up and unemployment and deficits are heading lower."

On June 23, nearly 52 percent of Britons voted in a referendum to end their country’s 42-year membership in the EU.

The government of Prime Minister Theresa May is expected to start negotiations for the leave by the end of March.