Britain’s Economy Grows at Slowest Annual Rate in a Decade

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The Brexit issue continues to drag the U.K. economy.

The United Kingdom has shown the weakest annual growth for the quarter ended in September. It is the slowest in a decade.

According to data from the Office for National Statistics, the U.K. has expanded by just 1 percent for this quarter, when compared to last year. The growth between the three months July to September has been just 0.3 percent, which is slow and sluggish growth.

Much is expected from the central bank to renew the fading economy. Productivity and investment have taken a beating from the Brexit issue that remains prolonged for many years.

The third quarter has shown a faint improvement of 0.3 percent growth which has helped keep away recession, as the second quarter has been in the negative. If two continuous quarters are in the negative, it signifies a recession, and the slight growth in the third quarter has helped to avoid a recession.

GDP in September has fallen by 1 percent. The month of July has helped to drive the economy with a growth of 0.3 percent.

Exports have improved for the third quarter which has brought down the trade deficit. Consumer spending was seen to be quite steady.

The manufacturing sector remained unchanged with a fall in car production and sales. The construction sector has performed better.

With general elections to be held next month, the country faces much turmoil over the Brexit issue. The slow data is adding to the election issues.

Ruth Gregory a senior economist at the UK Capital Economics says that the economy is soft, and has avoided a recession for the third quarter.

The trade war is taking its toll and Europe has not escaped from the slowdown that has hit the global economies.

The United Kingdom has avoided a recession but continues to remain weak with slowdown in the car industry and two no-deals Brexit stockpiling.

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