The UK’s economic growth is slower than every other advanced economy in the G7, with its meagre 0.2 percent rate putting it on a par with Italy.
Canada became the last G7 member to report its growth rate on Wednesday, shooting to the top of the league table with a stellar GDP figure of 0.9 percent in the first quarter. The was followed by Germany in second place with 0.6 percent, and Japan with 0.5 percent.
Britain fell to the bottom of the pile, with a 0.2 percent growth rate meaning the country is expanding at the same pace as Italy.
The disappointing GDP figure for the first quarter will do little to mitigate fears that the country’s exit from the European Union will have a negative impact on the economy. In the immediate wake of the Brexit vote the economy continued to perform above expectations, but has since began to stall. Uncertainty as to what kind of deal Britain will receive from the EU, as well as worries over the upcoming General Election, has led to a slowdown in performance.
However, in a display of confidence in the economic future of the country, ratings agency Moody’s recently raised its GDP forecast for the UK from 1 percent to 1.5 percent. It said:
“Nonetheless, Moody’s still expects weaker growth as investment spending slows as Brexit negotiations get under way and consumers feel the impact of accelerating inflation.”
Moody’s also downgraded their growth forecast for China last month, its first sovereign rating downgrade from the rating agency since 1989.