The Office for National Statistics (ONS), the Organisation for Economic Co-operation & Development (OECD) and the Bank of England (BOE), say the UK economy is booming despite earlier post-referendum fears and warnings that the UK would face severe economic shocks for passing the Brexit vote.
The media also seems to have joined the pro-Brexit bandwagon mocking dire warnings from British Conservative Party politicians like George Osborne.
Numerous reports show the British economy is sound and prospering after the UK decided to withdraw from the European Union on 23rd June 2016.
According to the latest ONS statistics, the UK hasn’t experienced any post-Brexit economic shocks as earlier anticipated. ONS statistics show that consumer spending is strong. The statistics also show that the housing market is stable and unemployment is low. These findings by the UK’s official statistics body mock George Osborne’s pre-Brexit warning of immediate and profound economic shocks on the UK economy if UK citizens didn’t vote against Brexit.
Bank of England sentiments
The BOE has also affirmed ONS statistical findings by admitting that the business sentiment in the UK has improved drastically post-Brexit. The BOE also stated recently that the fall in the value of the pound has boosted tourism. The Bank of England has also changed its tone on economic growth. Before the referendum, the BOE warned that UK economy would slow down and companies would be less willing to invest or hire. The bank has however changed its earlier sentiments.
The OECD hasn’t been left behind. The body has raised its UK growth forecasts despite being among the many international forecasters that predicted an economic catastrophe post-Brexit. The body now expects the UK economy to grow at a faster rate than the same period last year. A 1.8% growth forecast puts Britain alongside other major economies like Germany.
The sudden change in tone by three notable bodies clearly shows that post-Brexit forecasts were wrong. This has led some legislators such as Tory MP, John Redwood to demand an apology from the people who threatened Pro-Brexit UK citizens with dire consequences.
Banking sector sentiments
The banking sector hasn’t been left behind either. Banking heavyweights such as Bank of America, UBS, Merrill Lynch, JP Morgan and Morgan Stanley have also raised their forecasts for the UK economy.
There is also a separate ONS report showing that the UK’s deficit fell because of an increase in corporate as well as income tax. Car production statistics also show that there is a booming demand for UK-made cars overseas. Statistics indicate that car production is at a 14 year high.
Housing prices are also increasing steadily while the construction and manufacturing sectors have remained on the same growth path as before. The consumer confidence is also stable, and fears of a sharp decline as earlier feared have decreased.
The ONS chief economist, Joe Grice has also attested to the fact that the Brexit referendum results haven’t had a significant effect on Britain’s economy as earlier anticipated. However, Grice is quick to point out that the there may be long-term effects of Brexit that are yet to been seen or felt.
Before Brexit, major banks had downgraded UK forecasts. Morgan Stanley now expects the UK economy to grow by 1.9% up from its 1.2% forecast in August. UBS has also raised its forecast to 1.9% up from 1.3% stating that the UK economy is more resilient now than earlier anticipated.
Independent forecasts by the Treasury also show the UK economy in a positive light. The Treasury is far more optimistic now than before the Brexit vote.
Brexit voter sentiments
A new study has revealed that pro-Brexit voters were interested in cutting funding to the EU as well as migration and Brexit supporters still stand by their vote. Almost 80% of all UK citizens want the government to stop sending money to the EU since UK has no say in how the money is spent. There is equal support for controls to be put in place to determine who enters the UK. Furthermore, most UK citizens are optimistic about the future of their economy and country going forward regardless of the hurdles that remain before Britain makes a full exit.