One of Europe’s biggest banks has admitted the UK’s economic outlook is ‘not as bleak as many think’ after previously issuing dire warnings over the impact of Brexit.
Economists at UBS Wealth Management, an arm of Swiss bank UBS, are now saying that the economy will grow faster than expected.
They have forecast 1.1pc growth next year, still well behind other estimates, but up from an earlier projection of 0.7pc.
Economists at UBS Wealth Management, an arm of Swiss bank UBS, are now saying that the economy will grow faster than expected
Dean Turner, UK economist at UBS Wealth Management, said: ‘While weak business investment and falling household spending have driven the overall rate of GDP growth down, the picture is not as bleak as many thank.
‘Brexit uncertainty is undoubtedly having some impact, but businesses and consumers are showing resilience and adapting to the situation as it unfolds. Fundamentally, the UK has a flexible economy which is able to adjust to headwinds.’
It comes after a UBS analyst warned last year that a vote to leave the European Union could cause the FTSE 100 to fall by more than 10pc in a year. Instead, the benchmark index rose by 20pc.
The bank also claimed at one point it could move 1,000 jobs from the City of London to the Continent.
But UBS chief executive Sergio Ermotti admitted last month it was ‘more and more unlikely’ the move would ever happen.
New research published yesterday found British bankers could face a hefty pay cut if they relocate to the likes of Paris or Frankfurt after Brexit.
Salary benchmarking website Emolument said on average associates in London earned £109,000 including bonuses, while their counterparts in Frankfurt pocketed £89,000, those in Paris earned £81,000 and employees in Italy’s financial hub £52,000.