Belfast Telegraph

UK economy in midst of post-Brexit slowdown, says study

By Holly Williams

The UK economy is showing signs of further slowdown in the wake of the Brexit vote, a report by an influential think tank has claimed.

The National Institute of Economic and Social Research (NIESR) estimated that gross domestic product (GDP) output grew by 0.3% in the three months to August. That compares with GDP growth of 0.4% in the three months to July.

The chance of a technical recession before the end of 2017 "remains significantly elevated", the report said.

The probability of recession, indicated by two consecutive quarters of negative growth, currently stands at 50%, according to the NIESR.

A recent blog post by the think thank said the UK's annual growth rate is expected to fall to 1% in 2017 from 1.7% this year.

The study came as Bank of England governor Mark Carney denied allegations he "over-egged" Brexit warnings and insisted he was "absolutely serene" about policy-maker actions taken surrounding the referendum.

In a hearing with MPs on the Treasury Select Committee, Mr Carney denied accusations that the bank had exaggerated the economic hit ahead of the vote and "encouraged an overreaction after it".

Belfast Telegraph