Bank of England Governor predicts “conscious recoupling” of economies

Bank of England Governor Mark Carney has predicted a “conscious recoupling” of the UK economy with the rest of the world as Brexit continues.

Carney was speaking to the BBC at the World Economic Forum in Davos, and admitted that the UK economy is currently an outlier in terms of global economic growth.

Outcome

Mark Carney attributed this slightly slower growth to businesses holding back on investment, awaiting the outcome of the Brexit negotiations. However, Carney went on to predict that the UK economy would catch up with the rest of the world as Brexit continued and the picture became clearer.

Carney also gave his opinion on what the best outcome of the Brexit process would be for the UK economy, expressing his belief that the deeper the relationship between the UK economy, Europe, and the rest of the world, the better.

Recent figures from the International Monetary Fund have shown Europe is one of the key drivers of the current global economic growth, and Carney said he was confident the UK would catch up over the next few months as Brexit unfolded and the UK forged new links with other economies.

Clarity

Carney said: “The world economy is accelerating and we haven’t seen that yet. But there is the prospect this year, as there is greater clarity with Europe for conscious recoupling, to borrow a phrase from Gwyneth Paltrow, of the UK economy with the global economy.”