The first indications of how the U.K. economy is performing in the aftermath of the Brexit vote will be known this Thursday, with the release of quarterly gross domestic product (GDP) figures.
Analysts told CNBC they forecast a 0.4 percent growth in the third quarter of this year – an “upside surprise” following the decision last June to leave the European Union. Prior to the vote, many market observers were pointing to economic contractions if voters opted to leave the EU.
However, the medium- and long-term outlook for the U.K.’s gross domestic product remains fragile, especially since talks of a “hard Brexit” emerged at the conservative party meeting earlier this month.
“The medium-term is just as bad, despite the upside quarter three picture,” Oliver Jones, economist at Fathom consultancy told CNBC on Wednesday.
Jones said that private service sector would be the main driver of the third-quarter GDP figure, and activity by these companies are set to go up by 0.8 percent in the same period.
The Bank of England raised last month its growth expectations for the third quarter to 0.3 percent from 0.1 percent. It cited that near-term economic activity had been stronger-than-expected.