Most of the Brexit uncertainty that has been overshadowing the U.K. economy has lifted, although it’s too early to say business investment is fully returning, according to Bank of England Chief Economist Andy Haldane.
A “big chunk, if not all” of the uncertainty has dissipated, Haldane said in answer to questions following a speech at Bloomberg’s European headquarters in London Monday. That’s contributing to investment starting to pick up, but it’s “too early to declare victory,” he said.
Political tensions and a lack of clarity on Britain’s future relationship with its biggest trading partner has been weighing on growth and held businesses back from spending on capital that could bolster the country’s lackluster productivity. Recent survey data, however, has started to show some signs that the economy is beginning to bounce back.
Globally, the economy has grown stronger since the financial crisis more than a decade ago, Haldane said. Banks’ balance sheets are in better shape and he doesn’t seen the buildup of new asset bubbles. While trade has been hurt by U.S.-China tensions, he doesn’t predict a “wholesale retrenchment” of globalization.