Thursday, May 13News For London

UK economy “steadily grew” or “in a recession”?

According to the Office for National Statistics, Britain’s annual economy rate in the third quarter has slowed to 1%. It’s the slowest speed in the recent decade, a ONE spokesman said to BBC.

The GDP failed to achieve economists’ estimations. The Bank of England expected that the economy in the third quarter would grow by 0.4%. Although the economy avoided a recession, the second quarter’s figure decreased to 1.3%.

Some statisticians said economic growth in the third quarter was due to the good economic growth in July. The dominant services sector increased in the second quarter, but the manufacturing industry did not grow, said Suren Thiru, head of economics at the British Chambers of Commerce (BCC).

Faisal Islam, an economics editor, thought the “pretty soft” economy in the third quarter has been affected by the horrible financial environment, including trade wars and changeable Brexit deadline.

Westminster World interviewed several people nearby the London Stock Exchange and the Bank of England and asked them if they thought low growth influenced normal people’s lives, and what impact they think Brexit will have on the British economy.

“I think the recession is a European and worldwide thing. It is not just affecting us here but because of Brexit, people feel insured, and I think we all have a harder time because of the recession, but the recession is ending. I just think that uncertainty is not a good thing and uncertainty feels like a chance,” a high school teacher, Sanzie, said.

“I think Brexit will bring lots of changes to the markets. It can be positive and it can be negative, depending on which field you look at. It had some impact prices and it will also affect travel agency because it will be more difficult for people to travel. I think it has a big impact on our own lives. We have very high prices because stuff is very expensive and the European Union will impose higher taxes for British to export,” Floncarare said.

“I think is quite scary we don’t know what is happening now. Everything is changeable, maybe things will get worse after Brexit happen. Everything depends on whether we will have a trade deal or not. I think a trade deal will be massively beneficial to us in this way. I really hope that Brexit will not happen but I think the best way to fix everything is the outcome to have the best trade deal,” Catherine said.

However, Gybodger holds the opposite idea: “It’s probably pretty reasonable bearing in mind that the global economy is not sustaining to growth as people thought it will. Some of the drives that we have seen around the world are not going as fast as they should be or people think they would be. China is one of that obviously. And America is the other one.”

Moreover, he thinks that the recession is because of the low growth of the world’s economy, especially in some big drivers like China and the US, whose economic growth has slowed in recent years. It’s not just happening in Britain.