RCM Weekly review - August 2019 - Week 35
This week: Brexit uncertainty has caused the UK to fall to the bottom of the G7 GDP growth league.
30th August 2019
Brexit uncertainty has caused the UK to fall to the bottom of the G7 GDP growth league.
Today Canada has released it Q2 GDP figures with strong growth of 0.9% in the quarter. This means they are the top performing nation in the G7 and the UK showed the weakest performance with a 0.2% decline in growth.
2019 2nd Quarter GDP growth for G7 Countries:
1. Canada: + 0.9%
2. United States: +0.5%
3. Japan + 0.45%
4. France + 0.3%
5. Italy: 0%
6. Germany: - 0.1%
7. United Kingdom - 0.2%
Growth is weak across Europe with both the UK and Germany just one quarter away from potential recession. (A technical recession is defined as two consecutive quarters of negative growth)
The UK economy suffered a severe drop in manufacturing activity during the quarter partly caused by the excess stockpiling that took place in the first quarter in anticipation of the original Brexit date.
The Germany economy has also been hit by Brexit uncertainty; in addition, the US-China trade war has hit demand for its exports, with the automobile industry among others seeing falls in demand.
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