The outlook for the U.K. economy looks stable but the level of growth is low relative to both its historic performance and the rates of growth being achieved by the country's international peers, according to a spring forecast.
Economic forecasting group EY ITEM Club said Monday that it expects the British economy to expand by 1.6 percent in 2018 and 1.7 percent in 2019, little change from the projections in its previous forecast in winter 2017.
However, it added that the growth outlook is somewhat lackluster compared to similar economies.
"While stability is welcome, especially in the uncertain world we find ourselves in, it is nevertheless the case that the projected level of U.K. growth is low relative to both the U.K.'s historic performance and the rates of growth being achieved by the country's international peers," EY's Chief Economist Mark Gregory said in the report.
"The reality is that the U.K.'s economic performance is likely to be stable but sluggish, businesses cannot rely on the macroeconomy to drive growth," he added.
The report found there to be significant differences in the performance of various sectors in the U.K. economy, noting that retail and consumer-facing sectors — restaurants and bars, for example — faced continuing challenges.