Britain’s economic growth speeds up despite dire warnings by Remainers
GDP rose by 0.5% in the final quarter of 2017, new figures revealed, defying Brexit doom-mongers
BRITAIN'S economy is growing faster than before, it emerged today - defying Brexit doom-mongering.
The country's GDP rose by 0.5 per cent in the final quarter of last year, the Office for National Statistics said.
That is up from 0.4 per cent in the previous quarter - bringing overall GDP growth for 2017 to 1.8 per cent.
GDP growth stood at 1.9 per cent in 2016, suggesting that Brexit has barely slowed the economy down at all.
Experts said that this was FOUR TIMES higher than the bleak predictions made immediately after our bombshell vote to leave.
Treasury experts predicted before the EU referendum that if we voted to leave, Britain would plunge into a recession.
The economy has grown steadily since the poll in June 2016.
But the UK is lagging behind other large rich countries as the whole world experiences a boom in growth.
The 0.5 per cent growth was driven by a strong performance in services, up by 0.6 per cent, and manufacturing, which soared 1.3 per cent.
But it was dragged back by construction, which fell by 1 per cent.
The figures released today by the ONS are the latest boost for Chancellor Philip Hammond after years of sustained growth in jobs and a recent fall in inflation.
Critics pointed out that the 1.8 per cent annual rate was still the weakest for five years.
But Mr Hammond said it “underscored the resilience of the British economy”.
Mr Hammond tweeted this morning: "We can be proud of five years of sustained growth and record employment.
"But we are not complacent, so we are investing billions in transport, housing, digital connectivity and skills to build an economy fit for the future."Bank of England boss Mark Carney predicted the economy will start growing even faster once the terms of the Brexit deal are agreed.
He told the BBC: "What is happening in the UK is effectively the Brexit effect in the short term.
"The world economy is accelerating and we haven't seen that yet. But there is the prospect this year, as there is greater clarity with the relationship with Europe and subsequently with the rest of the world, for a conscious recoupling of the UK economy with the global economy."
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Paul Hollingsworth at Capital Economics said: “The economy picked up pace in the final three months of 2017, rounding off a solid, albeit unspectacular year.
“This supports our view that the consensus is too downbeat on growth in 2018 and that the Bank of England will raise rates by more than markets expect.”
But Europhile Lib Dem MP Tom Brake insisted the Brexit effect was “biting”.
The figures came as Bank of England Governor Mark Carney warned the Brexit vote had cost the economy “tens of billions” but the effect may be limited to the “short-term”.
Mr Brake said: “As the costs spiral and as the promises made by Leave campaigners look increasingly undeliverable, everyone has the right to keep an open mind about whether Brexit is really the right path for the country.”