Now major bank admits: UK can do well outside Europe

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 Brexit.

Economists at UBS Wealth Management, an arm of Swiss bank UBS, now say the economy will grow faster than expected.

They forecast 1.1 per cent growth next year, still behind other estimates, but up from an earlier projection of 0.7 per cent.

Dean Turner, UK economist at UBS Wealth Management, said: ‘While weak business investment and falling household spending have driven the rate of GDP growth down, the picture is not as bleak as many think. Brexit uncertainty is undoubtedly having some impact, but businesses and consumers are showing resilience and adapting to the situation as it unfolds.

‘The UK has a flexible economy which is able to adjust to headwinds.’

The bank had also claimed at one point that it could move 1,000 jobs from the City of London to the Continent.

But research published yesterday found British bankers could face a hefty pay cut if they relocate. Salary website Emolument said that, on average, associates in London earned £109,000, including bonuses.

Their counterparts in Frankfurt pocketed £89,000, those in Paris receive £81,000 and workers in Italy are on £52,000 a year.