‘This good period is BAD’ Economist says post-Brexit boom gives 'sense of superiority'
AN ECONOMIST has slapped down reports that show Britain is thriving after the Brexit vote - and thinks a “hard Brexit' is a huge mistake.
Newsnight guest slams post-Brexit optimism
Chris Giles, Economic Editor of the Financial Times, warned that people shouldn’t be hoodwinked by the early boom in the British economy, claiming it will only make things harder in the long term.
Three reports yesterday highlighted the booming health of the economy.
The Office for National Statistics outlined clear “indicators of strength” for the British economy since the June 23 poll to leave the European Union.
Predicted UK growth for this year was raised by the Organisation for Economic Cooperation and Development (OECD) from 1.7 to 1.8 per cent.
A hard Brexit will be the worst sort of decisions we could take
And the number of cars built in the uK last month topped 109,000, the highest August total for 14 years, a report from the Society of Motor Manufacturers and Traders said.
Despite the positive outlook from forecasters, Mr Giles suggested that the “good period” so soon after Brexit is going to cause damage in the long run.
Speaking on BBC’s Newsnight, he said: “I think paradoxically having a quite a good period now, or a reasonable period, is paradoxically quite bad for our long term because it gives us a sense of superiority.
“‘Hey, we’re great’, it’s what we thought after the Second World War, ‘we don’t need to join in with other countries, we are fine, we can do Brexit all alone, we can have a hard Brexit, let’s go for a really tough one, let’s do it straight away’.
“These are will be the worst sort of decisions we could take and actually paradoxically the fact that have been slightly better than we might have expected in the short run might make things worse in the long run.”
The OECD’s increased prediction of 1.8 per cent growth this year was in marked contrast to its Project Fear style gloom in April when it wanted of damaging uncertainty “from the moment of a Brexit vote”.
Yesterday it halved its prediction for British growth in 2017 from two to one per cent but only as part of a downbeat global outlook.
Chancellor Philip Hammon hit back at the Paris-based forecasters, saying: “The underlying strength in the UK economy will support growth this year, and we have seen that in the labour market where employment is at a record high.
“The OECD highlight uncertainty in their outlook. I am confident that we have the tools necessary to support the economy as we adjust to a new relationship with the EU.”
With UK Government borrowing falling by £900 in August to £10.5billion. Mr Hammond vowed Britain would make the most of the “opportunities” of Brexit.
He continued: “My message is clear. In our negotiations to leave, we will work hard to get the best deal for Britain."