Economists at major City investment banks have cancelled forecasts of a Brexit-inspired recession amid fresh data showing the economy performing more robustly than expected. Construction and export figures fuel hopes UK economy is growing Read moreCredit Suisse had been among the most bearish immediately after the EU referendum result, forecasting a 1% contraction in the UK economy in 2017. However, in a note entitled “Bouncing back from Brexit”, its economists now reckon the UK economy will expand by 0.5% next year. One forecasting house, Oxford Economics, which maintains a “recession watch” barometer, on Friday lowered the chances of a UK recession from 30% to 25%. Given this, the probability of a technical recession before the end of 2017 remains significantly elevated.”Among the more bearish of City commentators is Pantheon Macroeconomics.

Source: The Guardian September 09, 2016 16:42 UTC