British GDP Slowed Down in July: NIESR

The economic growth of the United Kingdom appears to lose slightly its momentum due to the weak performances within the services industry, based on the assessment of the National Institute of Economic and Social Research.

On Thursday, think-tank stated that the GDP of the Britain gained 0.2 percent within a three month period until July, after acquiring 0.3 percent increase during the second quarter.

According to The National Institute Of Economic and Social Research (Niesr), the UK economy keep on growing “below its long run trend of 0.6 percent”. The organization anticipates for an expansion in order to make a breakthrough in the second half of 2017, however, there are signs that consumer expenditure could possibly slump due to slackening growth in wages and weak investment spending induced by uncertainties related to Brexit.

It is projected that the gross domestic product will grow by 1.7 percent in 2017, in accordance with the adjusted estimate of the Bank of England. Amit Kara, head of UK macroeconomic research at NIESR mentioned about their projections towards the economic growth, with 0.4 - 0.5 percent increase due to rebalancing of the economy far from the domestic demand and closer to net trade. However, the economic growth stayed below the 0.6 percent long-run average growth rate because of the curbed development in terms of productivity.