The British economy contracted for the first time in seven years

Compared to the first quarter of the year, the UK’s GDP decreased by 0.2%, British National Statistics Office reports. Analysts relied on zero growth, Reuters news agency.

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

The economy collapses

The poor numbers were mainly due to lower British factory production. The service sector was still growing, but that was not enough to absorb the 1.4 per cent contraction in the manufacturing sector.

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

Wrong start Johnson

The numbers come at a bad time for Boris Johnson, who took over the UK premiership less than a month ago. He promised that the country would withdraw from the European Union under his leadership by October 31. Brexit is tough, so without arranging a departure with the European Union, it is an option for him.

Through Johnson’s harsh remarks, it was the cycle The British pound has already depreciated. After the numbers were published, the coin’s value depreciated further compared to the euro at Dollar.

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