Britain's economy grew by a better than expected 0.7 percent in the final three months of last year, showed official revised data on Wednesday, as the country prepares for Brexit. For 2016 as a whole, however, the British economy grew by a lower than forecast 1.8 percent, said the Office for National Statistics (ONS) in a statement. Initial readings given last month by the ONS had put fourth quarter gross domestic product (GDP) growth at 0.6 percent and annual GDP at 2 percent.
"The second estimate of fourth quarter U.K. GDP was a bit of a mixed bag," noted Paul Hollingsworth, economist at Capital Economics research group. "On the one hand, the figures confirmed that growth accelerated towards the end of last year, with the quarterly rise revised up. ... However, GDP growth for the year as a whole was revised down from 2 percent to 1.8 percent," he said. This was due to a lower estimate for first quarter GDP.
Britain's economy has grown more strongly than expected since the country voted last June to exit the European Union. Looking ahead, Hollingsworth said in a note to clients, "Lingering uncertainty about the U.K.'s future relationship with the EU as negotiations get underway may hold back investment. Nonetheless, upbeat consumer sentiment and continued low interest rates should ensure that household spending doesn't slow too sharply."
