However, as a result of domestic demand and the strong non-UK multinational sector, our assessment is that there would still be some positive growth in output over the coming years – even under a no-deal scenario. This would be materially lower than in the central forecast I outlined earlier – and would be closer to one per cent growth in both years.
A fast-growing economy is desirable as long as growth is sustainable. However, sometimes the economy can grow too fast and overheat. This happens when an economy reaches the limits of its capacity to meet demand from individuals, firms and government. One element of this is the concept of “full employment”, which occurs when almost everyone who wants to work has a job.