British Economy Shrinks by 0.3% in August

London, October 12 (QNA) – The British economy recorded an unexpected shrink by 0.3% on August, rising fears that it will into recession.

Data from the Office for National Statistics showed that economic growth slowed on a quarterly basis, during the three months from June to last August.

The Bank of England expected last month that the British economy will enter a recession by the end of this year, due to the unprecedented crisis of inflation and high cost of living.

Prime Minister Liz Terrace seeks to avoid going into a recession by adopting a package of tax cuts unprecedented in 50 years, and expanding government borrowing to finance tax cuts.

However, the plan announced by the Treasury Department caused widespread turmoil in the financial markets and increased the cost of government borrowing, and a significant rise in interest rates on mortgage loans.

The office indicated that the decline in economic growth in August was due to the decline in the manufacturing and maintenance sectors, which reinforced the decline in activity in the oil and gas sector. (QNA)