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British Prime Minister Theresa May speaks with journalists after meeting with European Council President Donald Tusk at the European Council Headquarters in Brussels on Thursday 7 February 2019. (Francisco Seco / Associated Press)
LONDON – Growing uncertainties about Brexit have seen the UK economy slow to reach its weakest growth rate since the aftermath of the global financial crisis, official figures announced on Monday.
The Office for National Statistics said the UK economy had posted quarterly growth of only 0.2% in the fourth quarter, down from 0.6% in the previous three months. In fact, production fell by 0.4% in December in December.
For the whole of 2018, the economy grew by 1.4%, its lowest rate since 2009, when it contracted by 4.2% as a result of the global financial crisis part of the global banking system on its knees.
Statisticians have not directly blamed the slowdown on Brexit, but there is ample evidence that the uncertainties of leaving the European Union weigh heavily on economic activity, especially business investment. Companies have no clear idea of what the country's trade relations with the EU will look like after the Brexit date of 29 March.
Rob Kent-Smith, head of statistics statistics for the statistics agency's GDP, said the slowdown recorded in the last three months of the year was particularly "marked" by auto production and production. Steel, offset by continued growth in the services sector, which is close to 80 percent of the UK economy.
The UK economy generally held up better than expected in the aftermath of the European Union exit vote in June 2016.
However, with the approach of Brexit day, businesses are starting to be nervous. There is no indication that uncertainty, described as "Brexit Fog" by the Bank of England, will dissipate soon.
Prime Minister Theresa May is struggling to save the Brexit agreement that she had reached with the EU in late 2004, after mbadively rejecting it by UK lawmakers. It is seeking concessions from the EU, in particular a controversial provision aimed at preventing any rigid border entry between EU member Ireland and Northern Ireland, which is part of from the United Kingdom.
She does not know if she will be able to get concessions and fears have grown in recent weeks as Britain separates from the EU without an agreement. In the worst case, the Bank of England said its economy could contract by 8 percent in a few months and home prices collapse by about a third.
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