Published On: Sun, Aug 11th, 2019

Brexit News: Economist says why UK will surge under no deal Brexit ‘it ain’t no recession’ | UK | News

Brexit-backing economist Ruth Lea has savaged claims the UK is heading for a recession – and revealed why no deal would actually spark an economic boost. Speaking on Sky News this morning, the political economist predicted a surprise return to growth in the lead-up to Britain’s Brexit deadline. Britain is set to leave the European Union on October 31, with a growing likelihood that the country will leave without a deal.

This has sparked concern among businesses, following the first GDP contraction in the British economy since 2012 this week.

Ruth Lea told host and economic editor Ed Conway: “It does not feel like a recession is coming to me.

“The second quarter figure was basically a correction of the first quarter which had been boosted by the Brexit preparations and stockpiling measures.

“It was a turnaround of about £10bn which is huge.”

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She added: “Household consumption this quarter was up 0.5 percent just like the first quarter, unemployment is still at record lows and real earnings are rising quite quickly.

“When you have unemployment of 3.8 percent, it ain’t no recession.”

She then revealed her shock forecast of growth in the next GDP figures.

The economist said: “As we run up to October 31, will businesses start stockpiling again like they did in the first quarter?

Ms Lea also dismissed claims that Britain’s economy was “a disaster” – and hit back at claims that “investment was plummeting”.

She said: “I’m relaxed about no deal. The deal is off the table.

“It’s obvious the European Commission will not reopen the negotiation and quite obvious that the withdrawal agreement can’t get through the Parliament.

“Trade will continue with just a few bumps on the road.”

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