UK economy could yet prove the naysayers wrong

UK economy could yet prove the naysayers wrong; Kevin Brown, Savings Specialist at Scottish Friendly, comments on latest GDP figures:

“This round of GDP data is undoubtedly encouraging, building on the UK economy’s strong showing in February. It suggests that in spite of the tax rises announced in the budget and multiple sources of global economic uncertainty, the UK economy has some resilience. It could yet prove the naysayers wrong.

“The problem is that with this US administration’s tariffs, data can be out of date very quickly. In the intervening month or so, we’ve had a US/UK trade deal, a US/China trade deal, tariffs imposed and tariffs rescinded. While the UK has greater clarity on its trading outlook, it is still vulnerable to problems in the broader economy.

“Nevertheless, there are reasons to be optimistic. The trade deal with the US at least protected key industries and a deal with the EU is imminent. Interest rates are falling, which should reduce mortgage and other borrowing costs for households. The ‘Armageddon’ scenario on the global economy appears to have passed.

“Even if the outlook is brighter, there are still risks for the UK. Planning to ensure you have a cushion against future volatility is sensible. Longer term, investing could provide a robust buffer for families whatever the prospects for the UK economy.”