Slowdown showdown
Tories blamed over growth slump
THE Government came under fire yesterday after the economy grew at its slowest rate for six years.
Unions said the Tories’ Brexit bungling had shattered business investment and hammered manufacturers.
Office for National Statistics figures showed the economy expanded by less than 0.2% in the final three months of 2018, and even shrank 0.4% in December.
It took growth in the whole of 2018 to 1.4%, the slowest since 2012. The last time it was weaker was the financial crisis of 2009.
Chancellor Philip Hammond insisted the economy was “fundamentally strong” and did not foresee a recession. But Unite assistant general secretary for manufacturing Steve Turner said: “All the warning signs are pointing to the economy heading for the deep freeze thanks to the Government’s mishandling of the economy and Brexit uncertainty.” TUC General Secretary Frances O’Grady added: “The Prime Minister’s failure to rule out a no-deal Brexit is harming confidence in the economy and holding back growth.”
Experts reckon the economy could bounce back if the Government heads off a no-deal Brexit.
Tej Parikh, senior economist at the Institute of Directors, said: “The clock is ticking, but if a Brexit deal can be agreed, things should start to look sunnier as pent-up demand is released and firms begin investing again.”