Continuing the decline in British industrial production in January
reports Rachel Reeves British Treasury Minister said: The government should act faster and more decisive for economic growth. But the Conservative Party has accused the government of “destroying growth”. Economists predicted that economic growth would be 4.9 percent in January, but its unexpected decline shows the overall weakness of the economy.
parts such as oil and gas construction and extraction performed poorly, but retail stores, especially grocery stores, experienced little growth. With the implementation of taxation in April, there are concerns about the ongoing economic growth.
Businesses have warned that increasing national premiums, minimum wages and reducing tax exemptions on companies may limit the economy’s ability to grow. Also, the uncertainty caused by Trump’s new tariffs and pressure to increase defense costs has made the situation more complicated.
Reeves has announced that the government will run the biggest increase in defense costs since the Cold War, but while the general budget is under pressure. The Central Bank of England has recently reduced Britain’s economic growth forecast by half, and it is expected that in the spring economic declaration, the budget responsibility office will also reduce its growth forecast.
In this case, the government is seeking to reduce welfare costs. Critics, including conservatives and liberal Democrats, have criticized government economic policies, and some entrepreneurs complain about tax pressure and increased labor costs.
Analysts believe that Britain’s poor economic growth has made it vulnerable to global change and unstable policies, especially in the automotive and foreign trade sector. As a result, the economic situation before the government’s spring economic declaration seems to be uncertain.
