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The Confederation of British Industry downgraded its growth projections citing continuing uncertainty from Brexit to growing global protectionist rhetoric.

The business lobby forecast UK gross domestic product to grow 1.4 percent this year and 1.3 percent next year. In December, it had projected 1.5 percent for 2018.

The agency underscored the need to focus on the drivers of domestic success - where government and business have greater control.

The CBI said the economy can shift up a gear if government and firms focus on productivity improvements at home and take full advantage of opportunities abroad.

"Snow capped a sluggish start to 2018 for the UK economy, and there's no disguising that Britain now finds itself in the 'slow lane' for growth," Rain Newton-Smith, CBI Chief Economist, said.

Any further pick up in real wages is forecast to be moderate and it is expected to weigh on consumer spending throughout the forecast period.

Although uncertainty around Brexit continues to affect some business investment decisions, the CBI sees early signs of investment being unlocked.

The lobby expects the global economy to grow by 3.8 percent in 2018 and 3.6 percent in 2019, following growth of 3.7 percent in 2017.