Martin Gilbert has told investors to ‘disregard what economists say’ as he now believes ‘Brexit won’t be as bad as we thought’.
The Standard Life Aberdeen co-chief executive said recent economic data suggests the UK’s decision to exit the EU will not be the negative many people think, saying of forecasts that ‘we all tend to overshoot on the downside when we make predictions’.
In an interview with Sky, Gilbert (pictured) said: ‘The borrowing figures suggest the UK economy is doing okay. Job figures are good. I think it is going to be better than people imagine.
‘Companies in the UK are also doing okay. You have to remember to disregard what economists are saying and look at corporate results. Some British companies, especially domestic companies, seem to be doing quite well. Certainly we're not yet seeing the recession that was predicted.
'I think Brexit won't be as bad as we thought it might be because we all tend to overshoot on the downside when we make predictions.'
He went on to describe global growth as ‘very strong’, although he acknowledged that uncertainty around passporting post-Brexit means banks are naturally carrying out contingency plans, adding ‘Dublin’s doing quite well out of this’.
Gilbert did however sound a note of caution around the growing concerns around capitalism itself. He warned that the younger generation have ‘fallen out of love with capitalism’, stressing that change is needed to make it ‘more user-friendly going forward'.
‘There is no faith in the system from younger people than myself,’ he added.