GDP figures show post-referendum resilience
The UK economy has continued to show resilience despite warnings of a post-referendum meltdown, the latest official data has shown.
UK GDP was 0.6% in the final quarter of 2016, slightly ahead of forecasts and in line with third-quarter growth of 0.6%.
The Office for National Statistics (ONS) said growth during the three-month period “was dominated by services, with a strong contribution from consumer-focused industries such as retail sales and travel agency services”.
The fourth-quarter figure means UK GDP grew by 2.0% in 2016, slightly behind the 2.2% achieved in 2015 and the consensus forecast at the start of the year. It is also much lower than the growth rate trend before the downturn, which averaged 2.9% a year over 10 years.
Despite that, the ONS said the “the sustained nature of recent economic growth” has resulted in GDP now being 8.7% higher than the pre-downturn peak level of output, achieved in the first quarter of 2008.
The service sector, which accounts for nearly four-fifths of the economy, grew the strongest in the final quarter, up 0.8%, but production’s growth was flat and construction increased only slightly.
In 2016 as a whole, the services, production and construction industries grew by 2.8%, 1.1% and 1.4% respectively.
Chancellor Philip Hammond said: “Every major sector of the economy grew last year, which is further evidence of the fundamental strength and resilience of the UK economy.
“There may be uncertainty ahead as we adjust to a new relationship with Europe, but we are ready to seize the opportunities to create a competitive economy that works for all.”
