LONDON, July 18 (Reuters) - Over time Britain's economy will adapt to changes in the value of sterling, finance minister Philip Hammond said on Tuesday when asked by a lawmaker about the impact of the fall in the pound since the country voted to leave the European Union.

"The short run effect of a depreciation of sterling would be expected to be a decline in our trade balance performance as we suck in more expensive, in sterling terms, imports," Hammond said.

"But over time, and there's signs the economy is doing this now, the economy will adjust, with exporters increasing their output to take advantage of weaker sterling and their greater competitiveness in international markets." (Reporting by William James and Kylie MacLellan, editing by Andy Bruce)