Brexit resilience to continue

While there are still considerable uncertainties over the economic outlook, we maintain our view that the damage from the UK’s vote to leave the EU will be smaller than most forecasters have anticipated. Admittedly, higher inflation and Brexit uncertainty are likely to slow growth in 2017. But we expect the economy to remain pretty resilient, with above-consensus GDP growth of about 1.8% in 2017, followed by growth of around 2.5% in 2018.