Rachel Reeves, Treasury Chief of Britain expressed her dissatisfaction with the official statistics indicating a significant slowdown in the British economy’s recovery from recession during the third quarter of the year. The top central bankers of the country have also raised concerns about the economic repercussions of the UK’s departure from the European Union.
The growth during the July to September period was just 0.1%, according to the Office for National Statistics. This figure fell short of the 0.5% gain which was there in the preceding three-month interval and below the market forecast of 0.2%.
As observed by the statistics agency, the overall output contracted in September which further intensified the allegations from the opponents of the new Labour government. It is asserted that the government’s negative outlook adversely impacted the economy in the initial week of its being in power.
Upon assuming office in July for the very first time in 14 years, the government labelled its economic legacy from the former Conservative administration as the most dismal in decades. Rachel Reeves made use of the budget to majorly increase taxes, mainly on businesses while also boosting funding for public services including the state-run National Health Service.
After the announcement of Friday’s statistics, Rachel Reeves stated that enhancing economic growth is the basis of all her objectives which is why she is not happy with the figures. The Resolution Foundation think tank has noted that the British economy has been a ‘rollercoaster’ over the past year and its mid-term has been described as grave and sluggish.
Due to the slowdown of the economy in the third quarter, the think tank has mentioned that the U.K. has slipped below the U.S. in the growth rankings in the group of Seven leading industrialised nations this year.
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