The UK is the worst-performing advanced economy in the world, official figures have revealed.
Despite exceeding expectations in the immediate wake of Brexit, the UK’s economy is still struggling as a result of the EU referendum result, with it now falling behind every other country in the Group of Seven (G7) advanced nations including Canada, France, Germany, Italy, Japan and the United States, along with the rest of Europe.
The GDP grew just 0.2 per cent in the first financial quarter of the year, down from 0.7 per cent in Q1 2016. A statement from the UK Office for National Statistics (ONS) reads: “During Quarter 1 (Jan to Mar) 2017, the UK experienced the slowest growth of 0.2pc among European countries and the G7, below that of the USA and Japan, which grew at 0.3pc. In Q1, Canada experienced the highest growth at 0.9pc.”
Though it’s predicted that the UK economy will experience marginal growth in the second quarter of the year, there are other contributing factors listed in the ONS statement that detail the struggles the country will face in getting back on its feet financially. With many households tightening their finances as a result of low income — ONS stated that national income is struggling the most since 1976-77 — there is less spending, leading to an economy struggling to expand. The expansion that the UK has experienced has been a result of people entering the country, ONS revealed.
With income falling by 1.4 per cent in Q1 2017, the price of living rising sharply and wages failing to experience any growth, the UK economy continues to struggle in a period of major restructuring following its ongoing departure from the European Union. With negotiations yet to have taken place following a controversial General Election, it remains to be seen how the nation will fare throughout the rest of the year.
(H/T Irish Independent)
