Stronger exports and the “great British consumer” will help the UK to weather Brexit uncertainty this year, according to Morgan Stanley, which almost doubled its 2017 growth forecast amid a series of upgrades by business groups and City forecasters.

Morgan Stanley now expects the UK economy to expand by 1.8pc this year, up from a previous forecast of just 1pc.

It said stronger growth at the end of 2016 and a “relatively smooth path” to the start of Brexit negotiations would ensure the economy expanded at a solid pace.

UK stock markets climbed and the value of sterling rose against the dollar and euro on Monday, even as Nicola Sturgeon, the Scottish First Minister, announced plans for a second independence referendum.

While Morgan Stanley’s forecast remains slightly below the Bank of England and Office for Budget Responsibility’s projections for 2pc growth this year, it said robust export growth and a modest slowdown in consumer spending meant the expansion this year could even hit 2.5pc in its most bullish scenario.