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The British economy slowed sharply

In the first quarter, the United Kingdom registered the strongest growth slowdown over the last year.

05.May.17 6:21 AM
By Christina Orlina


The British economy slowed sharply
Experts attribute the slowdown with the fall in the purchasing power of the British in consequence of inflation caused by the devaluation of the pound sterling after the referendum on leaving the EU.

For the first three months of 2017, the British economy grew by only 0.3%. For comparison, in the last quarter of 2016, several months after the referendum, the growth amounted to 0.7%.

The greatest concern is the fact that the slowdown in growth affected the services sector, the main locomotive of the British economy (78% of GDP). Growth has gone down from 0.8% in the fourth quarter of last year to 0.3% in the first quarter.

Despite the alarming statistics, the Finance Minister Philip Hammond urges citizens to be optimistic and vote for conservatives: “According to our forecasts, the growth of the British economy this year is expected to be 2%. On 8 June British people have to make a choice between five years of strong and stable government headed by Theresa May, which will ensure economic progress and achieve the best agreement exit from the EU, and a coalition of chaos, headed by Jeremy Corbin did, which again will bring down our economy.”

But according to some analysts, Theresa May went to early elections for fear that expected in 2017, the slowdown in the economy will lead to a decline in the popularity of the conservatives in the second half of this year.

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