New figures show strong UK economy although OECD warns of later impact

New figures published by the Office of National Statistics have indicated the UK economy has remained strong following the EU referendum, despite warnings of a possibly collapse.

The ONS has suggested that preliminary indicators, ahead of the publication of new GDP figures next months, show resilience in the economy – while noting that the GDP estimates will give a clearer indication of the impact of the referendum.

The Organisation for Economic Cooperation and Development has also revised up its forecast for the UK economy for 2016 by 0.1 percent. Publishing an update on its June forecasts, the OECD concluded there had been no immediate impact on the economy following the referendum. However, it has lowered its 2017 forecasts for the UK by one percent – twice the downgrade it predicted in June – suggesting the economic impact could be felt later, albeit that the UK will avoid a recession.

The updated forecast bring the OECD into line with a body of independent economic analysis.