British economy defies post-Brexit doom and gloom projections

by WorldTribune Staff, October 27, 2016

The British economy has been quite the corker over the past three months considering the gloomy forecasts after the vote to leave the European Union.

Philip Hammond. /Reuters
Philip Hammond. /Reuters

The UK economy grew by 0.5 percent in the three months after Brexit, according to the Office for National Statistics (ONS), more robust than many economists had expected and stronger than the 0.2 percent forecast last month by the Bank of England (BoE).

Chancellor Philip Hammond said the results show the British economy’s “resilience.”

“The fundamentals of the UK economy are strong,” Hammond said on Oct. 27. “The economy will need to adjust to a new relationship with the EU. I am confident that our strong links with the rest of the world will stand us in good stead as we deliver an economy that works for everyone.”

The ONS said there was little evidence of a “pronounced” impact on the economy in the immediate wake of the June Brexit vote.

The ONS said higher-than-expected GDP figures were driven by the services sector – which accounts for more than 78 percent of the British economy – which grew by 0.2 percent in the three months to September.

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