Economy in great shape – fund chief

BRITAIN’S economy will grow far faster than expected this year as millions of families become richer, according to one of the UK’s leading fund managers.

In an upbeat assessment of the outlook ahead of Brexit, Richard Buxton said the economy will expand by 2 per cent in 2018. That compares with forecasts of 1.5 per cent growth by the Office for Budget Responsibility, 1.6 per cent by the International Monetary Fund, and 1.8 per cent by the Bank of England.

Mr Buxton, who is chief executive of Old Mutual Global Investors, which looks after £27 billion of savers’ cash, said rising wages will boost families’ spending power this year.

Accusing other forecasters of being too ‘gloomy’, Mr Buxton said there was no shortage of companies willing to invest in Britain: ‘Virtually a week doesn’t go by without some overseas company wanting to buy a UK company.’