Brexit leaves UK with ‘WORLD LEADING ECONOMY’ as Bank of England experts are HUMILIATED
ECONOMISTS have been left red-faced after admitting they were wrong in making doom-mongering predictions about the impact of Brexit as Britain ended the year with one of the healthiest economies in the advanced world.
FTSE 100 begins new year at record high
After an Express.co.uk investigation yesterday into just how badly Britain’s economists are failing in their post-Brexit predictions Andrew Haldane, chief economist at the Bank of England, admitted the profession was in crisis.
Contrary to predictions, Britain’s economy post-Brexit has been shown to be thriving, with business activity hitting a 17-month high last month.
Britain’s economy grew by 2.2 per cent last year, which is more than six other leading nations including the US, Germany and Japan.
Bank of England chief economist Andrew Haldane has admitted the Bank was wrong about Brexit
The findings, produced by analyst firm IHS Markit, indicate Brexit has had a positive impact on the economy, thereby embarrassing economists who predicted damning consequences of Britain’s departure from the crumbling bloc.
Andrew Haldane, chief economist at the Bank of England, admitted forecasts were wrong and that “the data has surprised to the upside.”
Economist Mr Haldane has said the profession is now 'in crisis'
Mark Carney on the financial impact of Brexit
It’s a fair cop to say that the profession is to some degree in crisis
He said economists are now facing a “Michael Fish moment”, referring to Fish’s infamous assurance that there was “no hurricane” on the eve of the 1987 disaster.
Mr Haldane said: “It’s a fair cop to say that the profession is to some degree in crisis.”
In a dramatic u-turn, the Bank is now forecasting growth for the UK economy in 2017, predicting the economy will increase by 1.4 per cent.
A report published by the Centre for Business Research at Cambridge University has found that Treasury forecasts over Brexit to have been “flawed and partisan”.
The Bank of England has had a 'Michael Fish' moment, according to economists
According to the research, only one forecast - the fall of sterling - has come to pass.
Chief economist at IHSMarkit Chris Williamson said: “The UK economy ended 2016 on a high. Hiring has also revived alongside upturns in new orders and business confidence.”
He added that strong economic growth could lead to rising inflation and could force the Bank to raise its official rate from the record low of 0.25 per cent.
He said: “All of which adds weight to the argument that the next move by the Bank of England is as likely to be a rate hike as a cut.”