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UK Economics

UK economy is NOT slowing down: GDP grows by 0.6 per cent – faster than BEFORE Brexit vote

BRITAIN’S economy grew FASTER in the six months after the Brexit vote, than the six months before the referendum, official data revealed today.

uk gdpGETTY

UK GDP grew by 0.6 per cent in q4


UK GDP smashed expectations to expand by 0.6 per cent in the final three months of 2016, according to first estimates from the Office for National Statistics (ONS).

It comes on top 0.6 per cent growth between July and September, meaning the economy jumped by 1.2 per cent in the six months after the vote to leave the European Union (EU).

In comparison, GDP expanded by 0.9 per cent in the six months leading up to the referendum.

Experts said the figures were yet more evidence that Britain had not succumbed to the doom-monger predictions made by Remain campaigners ahead of the vote.

Overall the economy expanded by 2 per cent in 2016, in line with growth of 2.2 per cent in 2015.

uk gdp ONS

UK GDP in Q4 continued to grow


Jake Trask, currency analyst at UKForex, said:“There was yet more upbeat economic news from the UK this morning, as the preliminary reading for Q4 GDP came out above estimates.”This is yet more evidence that the UK economy has not fallen off the cliff some had predicted following the EU referendum.”

Britain’s service sector, which accounts for the majority of the economy, grew by a huge 0.8 per cent between October and December in 2016, showed ONS figures.

There was an especially strong contribution from retail sales and travel agency services, according to data.

At the same time, the construction sector grew by 0.1 per cent and agriculture by 0.4 per cent.

Production remained flat but within the industry manufacturing increased by 0.7 per cent.

uk gdp q4ONS


Largest and smallest quarter-on-quarter contributions of industries to headline GDP growth

The pound was up by around 0.2 per cent against the euro and flat against the dollar, following the news.Chancellor of the Exchequer Philip Hammond said: “Every major sector of the economy grew last year, which is further evidence of the fundamental strength and resilience of the UK economy.

“There may be uncertainty ahead as we adjust to a new relationship with Europe, but we are ready to seize the opportunities to create a competitive economy that works for all.”

In the coming months, the service sector is predicted to slow as higher inflation hits the spending power of British households.

However, the weaker pound is expected to boost industrial sectors, as exports are given a welcome boost.Ruth Gregory, UK economist at Capital Economics, said: “Survey evidence suggests that if the pound remains at current levels, past relationships suggests that exporters’ order books will strengthen considerably further during the course of the year.

“As such, we continue to think that growth will be a reasonable (above-consensus) 1.8 per cent in 2017 as a whole.

http://www.express.co.uk/finance/city/759073/UK-GDP-2016-Q4-0-6-2016-Brexit-economy

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