London: Official figures Friday showed that the British economy, the world’s sixth-largest, enjoyed a growth spurt in February, the month before US President Donald Trump started to roll out tariffs on imported goods.
The Office for National Statistics found that the British economy grew by 0.5 per cent in February, ahead of market expectations for a more modest increase of 0.2 per cent. It also revised January’s figure to no change from the previous estimate of a 0.1 per cent decline.
Were these more normal times, hopes for the year ahead would be high. But the recent market turmoil prompted by Trump’s tariff policies — and subsequent abrupt changes — is expected to lead to a downturn around the world, as businesses and consumers retrench in the face of the heightened economic uncertainty.
China’s decision to raise tariffs on US goods from 84 per cent to 125 per cent from Saturday has only added to fears that the world’s two biggest economies are heading for a drawn-out and damaging trade war.
While welcoming Friday’s growth figures, British Treasury chief Rachel Reeves acknowledged the uncertain outlook.
“The world has changed, and we have witnessed that change in recent weeks,” she said. “I know this is an anxious time for families who are worried about the cost of living and British businesses who are worried about what this change means for them.”
The Labour government has said that raising the UK’s economic growth is the number one priority over the next five years. Since the global financial crisis in 2008-9, the British economy’s growth performance has been historically lackluster.
AP
