Investing.com - GDP grew by 1.4% on a year-to-year basis in the final three months of last year. That was an upward revision from the preliminary estimate of 1.3% which had been the weakest growth since the second quarter of 2012. On a quarterly basis, Britain registered meager growth of 0.2%, which was also in line with expectations for no change from the preliminary reading.
Ongoing political turmoil regarding Brexit negotiations continues to hamper confidence in British economic growth. In its last policy statement, the Bank of England emphasized that “the economic outlook will continue to depend significantly on the nature and timing of EU withdrawal, in particular: the new trading arrangements between the European Union and the United Kingdom; whether the transition to them is abrupt or smooth; and how households, businesses and financial markets respond."
Brexit uncertainty has kept the BoE on hold since August 2018 as policymakers wait to see the final outcome and its impact on the economy. Despite the weak fourth-quarter reading, price pressures may not be far below the surface, given that earnings are rising at their fastest pace in 10 years.
Economists broadly agree with the BoE that improvement in growth depends on achieving an orderly Brexit, which could help the economy pick up in the second half of this year.