It seems that a slowing global economy is starting to effect even some of the most resilient powers. I, Jason Galanis, believe recent reports from September reveal that even the United Kingdom is not safe.
Economic growth in the United Kingdom slowed in the third quarter, even as potential threats loomed from the Euro-zone’s already dismal economic conditions.
The nation’s gross domestic product rose just 0.7 percent in the three month period from September. That was a small drop from what was reported in the last quarter—0.9 percent was the data from the second quarter earlier this year. The data and, subsequently, the news was broke by the Office for National Statistics. According to their calculations, the economy grew 2.8 percent on an annual basis.
The news of some economic growth didn’t take away from the fact that there are several factors preventing further growth for the United Kingdom’s economy.
Bank of England policymakers have expressed concerns about ‘threats of [economic] weakness from the Euro-zone,’ where many of Britain’s largest trading partners reside. Not only that, the manufacturing and services sector saw little activity throughout much of September.
Growth in services, considered the largest part of the U.K. economy, fell to 0.7 percent in the third quarter, dropping from 1.1 percent. Finance and business services also saw a similar drop; they eased to 1 percent from the previous 1.5 percent. Manufacturing saw slight growth at 0.4 percent, the smallest percentage of growth since the first quarter of last year.
Much of the concerns seem to be over a ‘serious loss of momentum in the overall global economy,’ which is undoubtedly affecting the United Kingdom at this time.
Although the growth is miniscule, the United Kingdom economy has seen growth for seven straight quarters—which is a good thing. The nation’s GDP is now 3.4 percent above the peak it originally saw in 2008.