Britain remains the slowest growing economy among G20 countries in Q4 2017, according to data from the National Statistics Office of the country. The UK Gross Domestic Product grew by 0.4% during the reported period, shows the third reading of the data. The service sector, which is predominant in the UK economy (around 80% of GDP), contributes most to growth over the period.
“Economic growth figures at the end of last year remain unchanged as services and industry continue to drive growth”, said Rob Kent-Smith of the country’s statistical office.
However, the data show that the UK remains at the bottom of the G7 countries by economic expansion, making it the slowest growing economy in the world in 2017. Growth of 1.4% is weaker than that of Japan and Italy, which are the other most slowly expanding countries in the conditions of the global economy.
Initially, Britain’s GDP grew 0.5% in the last quarter of 2017, but in February the data was revised downwards.
British GDP has risen already for 20 consecutive quarters. The last time the country’s economy shrank was in Q4 2012.
Against this background, the expectations that the country will see the slowest growth among major economies this year remain the same, says the Organization for Economic Cooperation and Development (OECD).
The organization raised its growth forecast for the United Kingdom’s economy to 1.3% in 2018, with a rising global recovery from the earlier 1.2% widening forecast. However, the growth remains the weakest among the G20 countries.
For this year, the OECD forecasts the fastest global economic growth since 2011, helped by tax and spending cuts in the US and Germany. The Paris-based organization said the world economy is about to expand at an annual rate of 3.9% in the next two years. This represents an increase in the forecast compared to November 2007 for growth of 3.7% in 2018 and 3.6% in 2019.