The British economy contracts more than expected

The economy in Britain shrank a little more significantly over the summer than previously thought. In the third quarter, gross domestic product (GDP) fell by 0.3 percent from the previous quarter, the ONS statistics office announced today after a second estimate in London. An initial calculation had shown a drop of 0.2 percent.

The development was mainly burdened by the weak production trend. Total industrial production decreased by 2.5% on a quarterly basis. The construction sector has also shrunk.

The result was only slightly dampened by the services sector, which grew by 0.1%. According to ONS calculations, total economic output is currently 0.8% lower than before the start of the CoV pandemic.

Brexit big problem for companies

In addition to the contracting economy, many businesses are also struggling with Brexit. More than three-quarters find the trade deal with the European Union anything but good. It makes it difficult to increase sales and expand your business, according to a survey published by the chambers of commerce among nearly 1,200 mostly small and medium-sized companies.

“Brexit is the biggest bureaucratic burden on business ever,” an East Midlands producer said in the report. “Simply importing parts to fix broken machinery or raw materials from the EU has become a time-consuming nightmare for small businesses.”

The Trade and Cooperation Agreement (TCA), signed in 2020, aims to enable duty-free trade with the European Union after Brexit. “Companies feel they are banging their heads against a brick wall as almost two years after the TCA was signed, nothing has been done to help them,” said Shevaun Haviland, director general of the UK Chamber of Commerce.