(Bloomberg) -- U.K. Chancellor of the Exchequer Sajid Javid said the U.K. economy would emerge stronger from a no-deal Brexit and blamed uncertainty over the split with the European Union for a downturn in the second quarter of the year.
Marking the worst performance since 2012, data on Friday showed a 0.2% decline in gross domestic product during the second quarter.
It was “not a surprise in any way,” Javid said. This statement was at odds with the reaction of economists. Not one of the 39 surveyed by Bloomberg predicted a drop of 0.2%.
A second consecutive quarterly drop would mean the U.K. is in a technical recession, and in a series of TV interviews Javid said he doesn’t expect a recession “at all.” He blamed a global slowdown and Brexit uncertainty for the fall.
“The best way I think to end that volatility is to bring about more certainty,” he told Sky News. That’s why it’s “critical” to leave the EU on Oct. 31 “deal or no deal”, he said.
The new chancellor’s stance is in contrast to his predecessor Philip Hammond, who repeatedly warned of the economic consequences of a no-deal Brexit and has now vowed to do everything in his power to prevent that outcome.
Javid has allocated 2.1 billion pounds ($2.5 billion) to help government departments step up their preparations for a no-deal split. He also started a one-year spending review on Friday, saying he wants to give departments certainty in order to allow them to prepare for Brexit.
“I think that we will be ready for it and we will get through it and we will come out stronger and even more resilient,” he said.
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