The UK economy grew by 6% in the final quarter of 2016 by beating the forecast of the dramatic slowdown of the British economy due to the EU referendum which dates back to the 23rd of June 2016.
Overall, the British economy grew by 2% in 2016 which is 0.2% slower than the previous year 2015 with 2.2%.
Alan Clarke, of Scotiabank, says that the first six months since the Brexit vote had seen growth of almost 2.5% annualised, which is above the economy’s trend rate. “Clearly, life goes on, despite the Brexit vote.” However some economists still warns that Brexit uncertainty is still around and will start affecting the UK businesses heavily from this year.
Chris Hare, the UK economist at Investec, says:
“More importantly, the sterling-related inflation squeeze on households is only just beginning – we expect the inflation rate to roughly double by the end of this year from the latest estimate of 1.6%.”
According to the Office for National Statistics, the final quarter of GDP growth was largely contributed by the service sectors which is worth about 80% of the British economy. This is due to consumers’ spending in retail stores and online, as well as the strong business service and finance industries’ contributions.
Fore more information: