"The UK economy grew more than expected in Q4 2016 despite the Brexit uncertainty, according to estimatges from the Office for National Statistics."
Gross domestic product rose 0.6% quarter-on-quarter in the final three months of the year, unchanged from the third quarter’s growth and ahead of expectations for a slowdown to 0.5%. Compared to the same period a year earlier, GDP increased 2.2%, also in line with the previous quarter’s annual gain and compared to forecasts of 2.1%.
The ONS said growth in the final quarter was driven by a strong performance in the services sector and improvements in construction and production. It marked the second quarterly GDP release since the UK voted to leave the European Union last June.
The fourth quarter figures mean GDP grew 2.0% in 2016, down fractionally from 2.2% in 2015.
Mark Sismey-Durrant, Chief Executive Officer at Hampshire Trust Bank, comments:
“It’s positive that the UK economy is still experiencing growth. Our SME Growth Watch report found that 25% of smaller businesses consider regulation as a key barrier to future growth. Therefore, as the Prime Minister has now set out a clearer vision for the UK outside of the EU, SMEs should act with increased confidence when pursuing their plans for growth in 2017. What’s important is how we help businesses harness this opportunity to succeed in the year ahead and for us, as a specialist bank, this means helping to ensure smaller businesses have access to finance in the sectors in which we operate.
"Our report forecast that SMEs are set to contribute £217bn to the UK economy by 2020 and it is vital these firms continue to invest and grow, so we can continue to see positive economic progress throughout this year and beyond.”
