Brexit has “turned out less badly than we first thought”, David Cameron has said.

The former prime minister said the decision to leave the European Union in June 2016 was a “mistake not a disaster” while talking to steel tycoon Lakshmi Mittal at the World Economic Forum in Davos.

Mr Cameron called the 2016 referendum on the UK’s membership of the EU to heal the Conservatives infighting over Europe.

He campaigned on a platform to Remain and when the Leave side won he resigned as prime minister the following morning.

In unguarded comments recorded by Channel 5 News at Davos, he was heard saying: "As I keep saying, it's a mistake not a disaster.

"It's turned out less badly than we first thought. But it's still going to be difficult."

During the campaign, the Remain side warned there would be immediate economic consequences if the UK voted to leave the EU.

Mr Cameron's closest ally and former chancellor, George Osborne, said in a speech in the days before the referendum that he would have to issue an emergency Budget to tackle a £30bn “black hole” in the event of a Leave vote.

Brexit bonhomie as May finally seals agreement with EU leaders Show all 10 1 /10 Brexit bonhomie as May finally seals agreement with EU leaders Brexit bonhomie as May finally seals agreement with EU leaders Britain's Prime Minister Theresa May is welcomed by European Commission President Jean-Claude Juncker Reuters Brexit bonhomie as May finally seals agreement with EU leaders EU President Jean-Claude Juncker greeting Theresa May at the EU Commission in Brussels PA Brexit bonhomie as May finally seals agreement with EU leaders Britain's Prime Minister Theresa May poses for a picture with European Council President Donald Tusk REUTERS Brexit bonhomie as May finally seals agreement with EU leaders EU Commission President Jean-Claude Juncker walks behind British Prime Minister Theresa May EPA Brexit bonhomie as May finally seals agreement with EU leaders British Prime Minister Theresa May (L) and European Commission President Jean-Claude Juncker address a press conference at the European Commission in Brussels AFP/Getty Images Brexit bonhomie as May finally seals agreement with EU leaders British Prime Minister Theresa May speaks at a press conference with EU Commission President Jean-Claude Juncker EPA Brexit bonhomie as May finally seals agreement with EU leaders Britain's Secretary of State for Exiting the European Union, David Davis (L) and Michel Barnier (2-L), the European Chief Negotiator of the Task Force for the Preparation and Conduct of the Negotiations with the United Kingdom under Article 50 enter the room by the emergency exit to attend British Prime Minister Theresa May press briefing on Brexit Negotiations in Brussels. EPA Brexit bonhomie as May finally seals agreement with EU leaders Britain's Secretary of State for Exiting the European Union David Davis (L), Britain's Prime Minister Theresa May (2-L), European Commission President Jean-Claude Juncker (2-R) and European Union's chief Brexit negotiator Michel Barnier (R) in a meeting on Friday morning AFP/Getty Images Brexit bonhomie as May finally seals agreement with EU leaders European Union chief Brexit negotiator Michel Barnier speaks during a media conference at EU headquarters Brexit bonhomie as May finally seals agreement with EU leaders European Council President Donald Tusk addresses a media conference at the Europa building in Brussels AP

Meanwhile, Mr Cameron – in a speech to Vauxhall car workers in Ellesmere Port in Cheshire – said Brexit would be like a “bomb” to the economy.

He said: “Let's just remember what a shock really means. It means pressure on the pound sterling. It means jobs being lost. It means mortgage rates might rise. It means businesses closing. It means hardworking people losing their livelihoods.”

Later on in the campaign he described leaving the EU as the “self-destruct option” and a Treasury analysis predicted an immediate year-long recession with the loss of up to 820,000 jobs within two years.

In the immediate term the UK has not gone into recession, even though growth has remained anaemic.

Mr Cameron's predictions about pressure on the pound and mortgage rate rises also turned out to be true.