Britain’s post-Brexit economy is growing faster than expected… just as Europe’s falters
UK's GDP forecast to rise by 1.8 per cent, suggesting remainers' warnings of a post-Brexit recession were simply scaremongering
BRITAIN’S economy is growing faster than predicted post-Brexit as Europe’s stutters, it emerged yesterday.
GDP is expected to rise by 1.8 per cent this year, according to accountancy giant PricewaterhouseCoopers.
In July and August, in the aftermath of the Referendum, it had been forecast to rise 1.6 per cent.
The increase adds an estimated £5billion to the value of goods and services produced in Britain.
And the bounce follows weeks of gloomy growth downgrades in the weeks after the June vote.
John Hawksworth, PwC’s chief economist, said: “Our improved outlook reflects the latest official data, which confirmed the UK economy remained in reasonable shape going into the Brexit vote.
“It’s encouraging that indicators such as retail sales held up well in July and purchasing managers indices bounced back in August.”
The news suggests Project Fear’s forecast of a recession in the event of a Leave vote were misguided.
There was more positive news yesterday with the number of jobs available in the financial sector increasing four per cent month-on-month in August.
Hakan Enver, of recruitment firm Morgan McKinley, hailed the rise as remarkable in the midst of Brexit, summer breaks and the bank holiday.
Meanwhile, European Central Bank president Mario Draghi said he expects the economic recovery of the eurozone to be “dampened”.
His outlook suggests Brexit will have more of a long-term impact on the EU rather than Britain itself.
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Mr Draghi said: “The economic recovery in the euro area is expected to be dampened by still-subdued foreign demand, partly related to the uncertainties following the UK referendum outcome.”
Mr Draghi also cut eurozone growth expectations for 2017 and 2018.
FORMER Belgian PM Guy Verhofstadt, who called Leave voters rats, has been appointed European Parliament’s chief Brexit negotiator.