UK 2018 financial progress weakest since 2012, as Brexit and international worries weigh
A British Union flag, also called a Union Jack, flies beside a European Union (EU) flag throughout ongoing professional and anti Brexit protests outdoors the Homes of Parliament in London, U.Ok., on Tuesday, Jan. 22, 2019.
“GDP slowed within the final three months of the yr with the manufacturing of vehicles and metal merchandise seeing steep falls and development additionally declining,” ONS statistician Rob Kent-Smith mentioned.
For 2018 as a complete, progress dropped to its lowest since 2012 at 1.four p.c, down from 1.eight p.c in 2017. Exports suffered from international weak spot and customers and companies grew more and more involved concerning the lack of a plan for when Britain is because of go away the European Union on March 29.
Final week the BoE chopped its forecast for progress this yr by 0.5 share factors to 1.2 p.c, which might be the weakest yr for the reason that 2009 recession.
The ultimate months of 2018 noticed issues a couple of international slowdown harm progress throughout main economies, due partially to commerce tensions between the US and China, and Brexit has remained an added problem for Britain.
Monday’s information confirmed internet commerce lopped greater than 0.1 share factors from the fourth quarter progress charge. Falling enterprise funding did related harm.
December alone, the financial system contracted by 0.four p.c, the largest fall since March 2016.
Lower than seven weeks earlier than Britain is because of go away the EU, Prime Minister Theresa Might has to date did not win parliament’s backing for the plan she agreed with Brussels to keep away from reimposing checks on items exported from Britain.