HANGZHOU (Reuters) – Britain’s economy will suffer as a result of the decision to leave the European Union despite signs in recent economic data that the impact has not been as severe as some predicted, Prime Minister Theresa May said today.
The June decision to leave the 28-country EU sent financial markets into shock in anticipation of a recession as Britain enters a years-long process of tearing itself away from its biggest trading partner and forging a new global economic role.
Sterling surged on Thursday after a stronger-than-expected survey of manufacturers offered the best signal yet that Britain’s economy is performing better than many had initially feared.
Nevertheless, May predicted that the vote would damage the economy and said the government would continue to monitor economic data in the coming months before setting out its fiscal response to protect the economy later this year.
“There will be difficult times ahead,” May told reporters on her way to a G20 summit in Hangzhou, China.
“We’ve seen figures giving some different messages in relation to the economy at the moment. I think the reaction of the economy has been better than some had predicted post- the referendum, but I won’t pretend it’s going to be all plain
