UK economy to make modest post-Brexit recovery if deal agreed:...

Britain’s economy will barely grow in the run-up to Brexit amid concern the UK will leave the European Union without an agreement, but if there is a deal there will be a modest post-divorce upturn, according to economists polled by Reuters.

“If there’s a silver lining from the mounting signs that the uncertainty caused by Brexit is holding back GDP growth, it’s that the economy could enjoy a decent rebound if a Brexit deal is agreed,” said Paul Dales at Capital Economics.

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Brexit doubts leave firms 'hung out to dry'

Earlier this week, official figures showed that the UK economy had expanded at its lowest annual rate in six years last year, with many economists blaming Brexit for the slowdown.

"There is a very real risk that a lack of clear, actionable information from government will leave firms, their people and their communities hung out to dry," said BCC director general Adam Marshall. The business lobby group also warned that the lack of clarity over what will happen had already "stifled investment and growth".

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Bank of England's Carney warns UK of no-deal Brexit hit

Bank of England Governor Mark Carney said on Tuesday Britain should be under no illusions about the likely shock to its economy if it leaves the European Union next month without a transition deal to ease the shock.

A no-deal Brexit would “certainly” deliver a hit in the short term to Britain’s economy, Carney said, adding that a weaker currency would not solve its problems. Asked by a Brexit-supporting lawmaker about the possibility of a weaker pound helping to absorb the no-deal Brexit economic shock, Carney said: “That’s part of the necessary adjustment mechanism but it is not a step to prosperity, it is a hit to income.”

Brexit 'deal dividend' not credible, MPs say

The Treasury Committee said it was "not credible" to describe any resultant economic boost from a Brexit deal as a "dividend". In their report on the 2018 Budget, MPs said what was being talked about was "avoiding something really very bad".

"The OBR already assumes an orderly Brexit, so there won't be a 'deal dividend' beyond the forecast just by avoiding no-deal," added Ms Morgan. "Business confidence may improve with increased certainty, but it's not credible to describe this as a dividend."

UK economic growth slowest since 2012

Suren Thiru, head of economics at the British Chambers of Commerce (BCC), said it was further evidence that "slowing global growth and continued uncertainty over Brexit are making trading conditions for UK exporters more challenging".

Growth in the year was 1.4%, down from 1.8% in 2017 and the slowest rate since 2012, the Office for National Statistics (ONS) said. The UK economy expanded at its slowest annual rate in six years in 2018 after a sharp contraction in December.

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