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What Brexit Woes? British Economy Grew More Than Expected In Q3

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What Brexit Woes? British Economy Grew More Than Expected In Q3
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The British people voted in late June of this year to officially withdraw membership from the European Union. Opponents of the move, dubbed the "stay campaign," argued that leaving the union would create immediate economic hardships.

The country's latest GDP figures don't support these views, as the U.K. economy performed better than expected. The U.K.'s economy grew 0.5 percent in the third quarter, exceeding the 0.3 percent median forecast of economists polled by Bloomberg.

The services economy rose 0.8 percent and offset declines in construction and production.

The GDP figures could be revised, as its based on around 44 percent of the total information that will ultimately be used. Nevertheless, the data reaffirms the "leave campaign," which downplayed fears of an immediate economic impact.

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"There is little evidence of a pronounced effect in the immediate aftermath of the vote," Office for National Statistics Chief Economist Joe Grice was quoted by Bloomberg as saying in a statement on Thursday. He added that the economy is growing at a rate "broadly similar" to its pace since 2015.

Bloomberg also noted that the country's third-quarter GDP report marks its 15th consecutive quarter of growth but falls short of the second quarter's 0.7 percent growth.

"We believe that this reading is sufficiently strong to convince the Bank of England to refrain from easing monetary policy again" Bloomberg quoted Alan Clarke, an economist at Scotiabank in London. "There is no need to panic."

Posted-In: Alan Clarke BrexitNews Eurozone Global Econ #s Markets Media Best of Benzinga

 

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