In 2017, the British economy grew at a snail pace of 1.7 percent, The Guardian reports. Meanwhile, the 4th quarter growth has been revised down to 0.4 percent. That’s well below the growth in many developed economies.
Business investment in the UK was stagnant last year as companies are waiting to see what happens during Brexit negotiations. Business uncertainty has spiked after the Brexit vote in 2016. Meanwhile, household spending grew only 0.3 percent last quarter, bringing the annual growth rate to a meager 1.8 percent.
On top of that, the trade deficit has widened during the last quarter of 2017 to over £12 billion from less than £10 billion a year before. This data is worse than expected. According to Danske Bank analysts, the traditional growth engines in the UK are lagging.
The latest performance of the United Kingdom’s economy is behind other G7 nations. The growth rates in Germany, the United States, and the Eurozone stood at 2.5 percent or higher. Even France, Italy, and Japan, countries known for slow economic growth, outperformed Britain.
If Brexit negotiations aren’t favorable to the British, this is likely to get worse. The Brits dream of making another Singapore or Australia out of their country, yet the miss a major point: the UK is near Europe. It is not in the fast growing Asia-Pacific region. Geography makes a difference.