UK now worst performing advanced economy thanks to Brexit downturn

The UK now has the worst performing advanced economy in the world, thanks to a Brexit downturn.

Growth fell to 0.2 percent during the first three months of 2017, meaning that Britain sits at the bottom of the G7 advanced economies.

Before the EU referendum on June 23 last year, the UK economy was outperforming the US, Germany and Japan.

Now the UK is at the bottom of the pack alongside Italy, whose economy also grew by just 0.2 percent during the first quarter of 2017.

In comparison Canada’s growth hit 0.9 percent, Germany’s was 0.6 percent, Japan’s was 0.5 percent, France’s was 0.4 percent and the US’ was 0.3 percent.

Although the UK economy defied expectations and remained strong directly after the Brexit vote, inflation jumped to 2.7 percent for the year in April because of a dramatic fall in the value of the pound, which has also raised the cost of imports.

Theresa May’s threats to crash out of the EU with no deal and turn Britain into coporation tax haven have led to disquiet amongst industry and ratcheted up bad feeling within the EU.

Wages are now falling behind price increases, according to the latest data from the Office of National Statistics.

Earlier in the month, the Bank of England downgraded the UK’s growth forecast for the rest of year to 1.9 percent, compared to a forecast of 3.7 percent for Canada.

Brexit briefing: Weekly news roundup

16 February 2018

Unite Brexit Check’s weekly news briefing on the UK’s exit from the EU. Check back every Friday for an overview of the week’s Brexit-related political, industrial...