The British economy contracted for the first time in seven years

The British economy contracted for the first time in seven years

Compared to the first quarter of the year, UK gross domestic product (GDP) fell 0.2 per cent, according to the British Office for National Statistics. And Reuters news agency reported that analysts expected zero growth.

Compared to the same quarter last year, the economy continued to grow, but at a slower pace than in the first quarter of 2019.

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The weak numbers were mainly due to lower British factory production. The services sector continued to grow, but that was not enough to absorb the 1.4 percent contraction in the manufacturing sector.

“There is no doubt that the economy is slowing,” said Mike Jackman, analyst at PricewaterhouseCoopers. According to him, the British economy has no room for maneuver due to the Brexit crisis, but also because of the uncertainty about the global economy caused by the trade conflict between the United States and China.

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These numbers come at a bad time for Boris Johnson, who has been prime minister of the United Kingdom for less than a month. He promised that the country would leave the European Union under his leadership by October 31 at the latest. Brexit, that is, without a departure arrangement with the EU, is an option for him.

Because of Johnson’s harsh statements, the British pound has already fallen. After the figures were published, the currency continued to fall against the euro and the dollar.

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