(Bloomberg) – According to Andy Haldane, chief economist at the Bank of England, most of the Brexit uncertainty that has overshadowed the UK economy has cleared up, though it is too early to say that corporate investment is fully returning.
"A large, if not all," of the uncertainty has resolved, Haldane replied to questions after a speech on Monday at Bloomberg's European headquarters in London. This will help investment pick up again, but it's "too early to declare victory," he said.
Political tensions and a lack of clarity about Britain's future relationship with its largest trading partner have hampered growth and prevented companies from spending capital that could exacerbate the country's weak productivity. However, recent survey data show the first signs that the economy is recovering.
The global economy has grown stronger since the financial crisis more than a decade ago, said Haldane. Bank balance sheets are in better shape and he hasn't seen any new asset bubbles. While trade has been hampered by tensions between the US and China, it does not predict a "major cut" in globalization.
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