RT @newsbusters Shhh! Six Months After Brexit Vote, UK 'Has World's Top Economy' https://t.co/BfuEmZ8fp2— GlobalAwareness101 (@Mononoke__Hime) January 7, 2017
Britain has world’s top economyBrexit vote was Bank’s ‘Michael Fish moment’Britain ended last year as the strongest of the world’s advanced economies with growth accelerating in the six months after the Brexit vote.Business activity hit a 17-month high last month, meaning that the economy grew by 2.2 per cent last year — more than the six other leading nations, including the US, Germany and Japan.Far from slowing after the referendum in June, as predicted by the Treasury and Bank of England, growth appeared to have improved. GDP grew at 0.3 per cent and 0.6 per cent in the first two quarters of last year, compared with 0.6 per cent and an estimated 0.5 per cent in the final period.Andrew Haldane, chief economist at the Bank of England, suggested that economic forecasters were facing a “Michael Fish moment” over their mistaken predictions. Mr Haldane ... (referring) to Fish’s infamous assurance of “no hurricane” on the eve of the great storm of 1987, said yesterday: “It’s a fair cop to say that the profession is to some degree in crisis.”He also admitted to shortcomings in pre-Brexit predictions, saying that “the data has surprised to the upside”.
... Steve Baker, the Brexit-supporting MP, said that the performance of the economy since the referendum was a reproach to those who warned of dire consequences. “This is another moment to reflect that the horror stories that we were told simply didn’t come to pass,” he said.An assessment by Cambridge University criticised “flawed and partisan” Treasury forecasts of Britain’s economy outside the EU. Only one, the fall in sterling, had proved correct, according to the Centre for Business Research. Treasury predictions on the prospects of trade outside the EU came in for particular criticism in the academic assessment published last month.“We have looked very carefully at what the Treasury has said about this and we find its work very flawed and very partisan. It is not objective,” Graham Gudgin, one of the authors of the report, said.Britain’s robust performance means the economy heads into 2017 on solid ground.