UK economy grows 0.7% in final quarter of 2016

 Britain's economy grew by 0.7 percent in the final three months of last year, unrevised official data showed Friday, days after Britain began the process to leave the European Union.

For 2016 as a whole, the British economy grew by 1.8 percent, the Office for National Statistics said in data that confirmed last month's initial estimate.

Following Friday's data, analysts warned that Britain's growth rate could have peaked with the uncertainty of Brexit weighing down on future expansion.

"It looks odds-on that the fourth quarter of 2016 was as good as it gets for some time for the UK economy," said Howard Archer, chief UK economist at IHS Global Insight.

"It appears that consumers have significantly reined in their spending in the first quarter of 2017 as their purchasing power is eroded by markedly rising inflation.

"We also expect business investment will be limited by slower economic activity and heightened uncertainties over the outlook as likely difficult negotiations with the EU over Brexit come to the forefront," he added.

Britain's economy has grown more strongly than expected since the country voted last June to exit the European Union, but will now be exposed to the political wranglings of Brexit after Prime Minister Theresa May began the divorce proceedings on Wednesday.

source: AFP