Hammond: U.K. Economy More Robust Than Thought

The transcript discusses the impact of Brexit on the UK economy, highlighting that initial data showed resilience with stronger growth and employment than expected. However, economic forecasts suggest a slowdown as negotiations with the EU continue. Investment concerns are prominent, with businesses hesitant to make decisions amid uncertainty. The focus is on managing this uncertainty to support employment and consumer confidence.

What does the backward-looking data suggest about the UK economy post-Brexit?

• The economy is facing a recession.

• There is no change in the economy.

• The economy was more robust than expected.

• The economy is declining rapidly.

What is the general expectation of economic forecasters for the UK in 2017?

• A slowdown in economic growth.

• Stability in economic growth.

• Rapid economic growth.

• A complete economic collapse.

What is a major concern for investors regarding the UK economy?

• High inflation rates.

• Uncertainty about future EU relations.

• Lack of skilled labor.

• Rising interest rates.

How does uncertainty affect business investment decisions?

• It leads to postponement of decisions.

• It results in lower required returns.

• It has no effect on investment decisions.

• It encourages immediate investment.

What is crucial for supporting the economy during uncertain times?

• Cutting consumer spending.

• Increasing taxes.

• Reducing employment.

• Restoring certainty quickly.