LONDON: Britain’s economy has the potential to start catching up with the rest of the world as the outcome of the Brexit negotiations becomes clearer, the governor of the Bank of England has said.
Mark Carney said there was the prospect of a “conscious recoupling” after seeing the international economy pull strongly ahead.
The UK, he said, was suffering from a short-term “Brexit effect” – with the economy expected to be down 2% at the end of 2018 compared with what had been expected before the time of the EU referendum in 2016.
However, he said firms which had been putting off investment decisions could start investing again as greater clarity emerges over the likely Brexit settlement.
“What is happening in the UK is effectively the Brexit effect in the short term. And I would underscore ‘in the short term’,” he told BBC Radio 4’s Today programme.
“The world economy is accelerating and we haven’t seen that yet. But there is the prospect this year, as there is greater clarity with the relationship with Europe and subsequently with the rest of the world, for a conscious recoupling of the UK economy with the global economy.”