Latest posts by Anastasia Moroz (see all)
- HSBC demands answers from Theresa May - 14 Nov 2016
- The impact of Trump victory, according to Deutsche Bank - 09 Nov 2016
- Members of Parliament enabled to block Brexit - 03 Nov 2016
According to the International Monetary Fund, the UK will experience a more drastic economic boom than any of its peers in the G7 this year, in spite of the previous warnings that Brexit could result in economic recession.
The Washington DC-based IMF stated that the United Kingdom would manage a “soft landing” following June’s unexpected Brexit vote, with economic expansion coming to 1.8% this year.
However, it said that the UK would start encountering the ramifications of the vote next year, reducing its forecast for economic growth to just 1.1%.
The IMF’s economic counsellor Maurice Obstfeld commented: “We are looking at a soft landing for 2016. We are happy about the outcome.”
Why UK investors should watch out for ‘Brexit blindness’
His comments appeared after sterling hit a 31 year-low against the US dollar of $1.274 yesterday. The following comments were coming from Theresa May dwelling on the probability of a “hard Brexit” at the Conservative Party conference, during which she also announced the plan to trigger Article 50 by the end of Q1 2017.
Obstfeld warned the Brexit influence has not been removed and the concerns spinning around the terms of UK independence will make businesses more circumspect, while also undermining living standards.
In response to the IMF’s prognosis, Chancellor Philip Hammond agreed that while the UK economy has been left unaffected, some economic issues are expected to appear on the horizon.
“There are still challenges ahead, as the IMF note in their estimate for growth in 2017,” he said.
“That is why I stand ready to take action to support our economy through any period of turbulence and will continue to pursue the long-term goals of fiscal consolidation and improved productivity.”