UK economy will grow faster than EU rivals in Brexit year, says IMF


THE PROMISE of a smooth Brexit has boosted confidence in the UK economy as it is set to grow faster than that of the Eurozone, according to the IMF

Britain has been given a sunnier outlook than many of its European rivals as it prepares for an orderly Brexit.

Sajid Javid said the British economy will be going from “strength to strength”

The IMF has predicted the British economy could accelerate from 1.3 per cent to 1.4 per cent this year, and 1.5 per cent in 2021, assuming there is an orderly exit from the EU.

The UK is set to outpace the entire Euro Area, which is predicted only 1.3 per cent this year and 1.4 per cent of growth by 2021.

The optimistic predictions come as CEOs around Europe declare their faith in Britain as an important hub for business, according to PwC.

Other European economies were predicted to struggle in the next two years, with Germany looking at growth of 1.4 per cent, France 1.3 per cent and Italy 0.7 percent by 2021.

Spain was given a better outlook than Britain, with growth of 1.6 per cent, by 2021, but falling from 2 per cent in 2020.

The UK’s attractiveness to CEOs from Germany, France and Italy has hit 2015 levels of confidence, after a noticeable slump following the referendum and years of delay in getting a Brexit deal.

As Boris Johnson’s promise to leave the EU on January 31 looms nearer, the UK has more than doubled as a popular growth target for European chief execs, according to PwC.

In Germany, the UK was one of the top three targets for growth for 13 per cent of chief execs, in comparison to 6 per cent last year.

PwC Chairman Kevin Ellis called the UK a “beacon of relative stability” for business, amongst a turbulent global backdrop.

Chancellor of the Exchequer Sajid Javid was confident that the UK would bounce back to a country of economic growth following Brexit.

“We look forward with confidence as we (go) forward and strike that new deal with our European friends and strike new FTAs (Free Trade Agreements) across the world,” he said today.

“It will be a very important time for British business and I can see a British economy that goes from strength to strength.”

More than 1,000 financial firms have flocked to London to open new offices to continue to serve British customers and beat any post-Brexit trading restrictions.

Boris Johnson with EU Commission boss Ursula von der Leyen

The UK and the EU will begin talks of trade negotiations following Britain’s exit, but officials at the European Commission have been dragging their feet on setting a timetable for talks.

Mr Johnson is set to hold talks with the United States at the same time.