UK Economy has Grown Since Brexit Vote!October 27, 2016 3:06 pm
Despite a decrease in the value of the Pound Sterling, it was announced today that the UK’s economy grew by 0.5% in the three months after the ‘Brexit’ vote.
Growth of 0.3% was originally forecast, which is less than the 0.7% increase in the previous quarter, however the Pound reacted positively following the announcement earlier today. It is the UK’s service sector which has given the economy a well-needed boost and expectations of a BOE interest rate cut have now been dampened.
Howard Archer, UK economist at IHS Global Insight, said: “It looks certain that third-quarter growth was also heavily dependent on consumers’ willingness to keep spending, supported by still decent purchasing power and high employment.
“Consumer spending also clearly benefited from the weakened Pound encouraging spending by overseas visitors to the UK. The weakened Pound also supported foreign orders for UK goods and services.”
Arrangements for Britain’s departure from the EU next year means the Pound is likely to remain volatile in the coming months. We may have positive data, such as the UK service sector growth, however ‘Remain’ supporters will argue that only the prompt action by the Bank of England has saved the economy and the worst is yet to come. On the other hand, Brexit supporters will argue that the warnings of a failed economy were nothing but scaremongering. With agriculture, manufacturing and construction figures all decreasing, we will have to play a game of ‘wait and see’ what the next few months will bring.
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Categorised in: News
This post was written by Kayleigh Driscoll