Investment Clock insights

UK growth driven by weak sterling and strong trade


Ian Kernohan

22 February 2017

Far from slowing down after the vote to leave the EU, GDP growth actually picked up in the second half of the year.  However, there were some signs that Brexit uncertainty is starting to have some impact on the corporate sector, with business investment down during the last three months, combined with slower growth in consumer spending.  
The good news is that weaker sterling is helping to rebalance the economy.  There was a strong contribution from net trade in the final quarter of the year.

Far from slowing down after the vote to leave the EU, GDP growth actually picked up in the second half of the year.  However, there were some signs that Brexit uncertainty is starting to have some impact on the corporate sector, with business investment down during the last three months, combined with slower growth in consumer spending.  

The good news is that weaker sterling is helping to rebalance the economy. There was a strong contribution from net trade in the final quarter of the year.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.