The British economy will pay a higher cost in 2017 and 2018 for the uncertainties created following the vote on the country out of the EU (Brexit), said on Thursday the European Commissioner for Economic Affairs Pierre Moscovici, admitting that the UK was not immediately affected by 23 June vote.
"Uncertainties will have a more palpable on the British economy in 2017 and 2018," said Pierre Moscovici, in a press conference in Brussels after admitting that the UK has fared better than expected immediately after voting June 23.
The whole of last year, the British economy has registered an advance of 2%, the lowest growth rate in 2013, down from 2.2% in 2015. For this year, economists expect an expansion of only 1, 2%.
According to data published Thursday by the Office for National Statistics (ONS), UK GDP growth in the fourth quarter of 2016 exceeded the forecasts of economists, continuing to defy expectations of slowing expansion in the vote on the country out of the EU.
The increase of 0.6% exceeded economists' estimate of 0.5% and marks the 16th consecutive quarterly advance of the British economy. Growth engine of the economy it was the services sector, supported by consumer spending, while industry and construction contributed zero, according to data released Thursday by the Office for National Statistics (ONS).
After the vote June 23 on the UK out of the EU economy recorded a performance above expectations, recent data shows a possible decline in consumer spending due to the depreciation of sterling, affecting income.
Services, which account for over 75% of UK GDP, recorded an advance of 0.8% in the period October to December 2016, offsetting stagnation in industrial production and growth of just 0.1% in the construction sector.
At an annual pace, the UK recorded GDP growth of 2.4% in the fourth quarter of 2016, also above analysts' estimates.
