Brexit leaves UK with ‘WORLD LEADING ECONOMY’ as Bank of England experts are HUMILIATED

ECONOMISTS have been left red-faced after admitting they were wrong in making doom-mongering predictions about the impact of Brexit as Britain ended the year with one of the healthiest economies in the advanced world.


Bank of England chief economist Andrew Haldane has admitted the Bank was wrong about Brexit

Contrary to predictions, Britain’s economy post-Brexit has been shown to be thriving, with business activity hitting a 17-month high last month.

Britain’s economy grew by 2.2 per cent last year, which is more than six other leading nations including the US, Germany and Japan.

The findings, produced by analyst firm IHS Markit, indicate Brexit has had a positive impact on the economy, thereby embarrassing economists who predicted damning consequences of Britain’s departure from the crumbling bloc.Andrew Haldane, chief economist at the Bank of England, admitted forecasts were wrong and that “the data has surprised to the upside.”

Andrew Haldane GETTY

Economist Mr Haldane has said the profession is now ‘in crisis’

It’s a fair cop to say that the profession is to some degree in crisis

Andrew Haldane, chief economist at Bank of England

He said economists are now facing a “Michael Fish moment”, referring to Fish’s infamous assurance that there was “no hurricane” on the eve of the 1987 disaster.Mr Haldane said: “It’s a fair cop to say that the profession is to some degree in crisis.”

In a dramatic u-turn, the Bank is now forecasting growth for the UK economy in 2017, predicting the economy will increase by 1.4 per cent.

A report published by the Centre for Business Research at Cambridge University has found that Treasury forecasts over Brexit to have been “flawed and partisan”.

Bank of EnglandGETTY

The Bank of England has had a ‘Michael Fish’ moment, according to economists

According to the research, only one forecast – the fall of sterling – has come to pass.Chief economist at IHSMarkit Chris Williamson said: “The UK economy ended 2016 on a high. Hiring has also revived alongside upturns in new orders and business confidence.”

He added that strong economic growth could lead to rising inflation and could force the Bank to raise its official rate from the record low of 0.25 per cent.

He said: “All of which adds weight to the argument that the next move by the Bank of England is as likely to be a rate hike as a cut.”

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Jane Davies
Jane Davies

Across this side of the pond Canadians lamented the loss of Mark Carney to the UK, his was a steady hand on the tiller of the banking industry but then he was contaminated by the UK politicians and was complicit in the lies and scaremongering of the Tory party. Now he has lost his credibility as far as I’m concerned, I just wonder what carrot he was offered to join the dark side.

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