England experienced an unexpected 0.5% contraction in GDP in July due to record rainfall and strikes. In this respect reports United Kingdom Office for National Statistics (ONS).
A month ago, the country’s economy grew by 0.5%. The biggest blow was in the services and construction sectors, which decreased by 0.5%, and in industrial production, which decreased by 0.7%. Consensus estimate from analysts gathered by the agency Reuters It predicted a more modest decline of 0.2%.
One of the reasons for the decline in GDP was unusually heavy rains, which led to a decline in construction and retail trade activities. July 2023 went down in UK history as the sixth heaviest rainfall month since records began in 1836. Trading companies reported a significant decline in retail sales in July due to adverse weather conditions.
Another negative factor was the mass strike of doctors and teachers demanding a salary increase in the face of rising inflation, which seriously hit the service sector.
Central Bank at the beginning of August named Three scenarios for the development of the Russian economy.
Previous economic recession in Germany connected We are dependent on the Chinese market.