Emerging markets face newer challenges in the form of inward looking policies of protectionism and increased geopolitical tension, Finance Minister Arun Jaitley said today as he pegged India&#39;s GDP growth at 7.7 per cent in 2018.

Speaking at the second annual meeting of the New Development Bank (NDB) here, Jaitley said global growth is moving upwards and is expected to improve further in 2017-18.

&quot;Indian economy is expected to grow at 7.2 per cent in 2017 and at the rate of 7.7 per cent in 2018,&quot; he said.

Jaitley said emerging market economies (EMEs) face newer challenges in the form of inward looking policies of protectionism of some economies, global financial condition, policies of the United States and increased geopolitical tension.

He said India has sought USD 2 billion loans for various projects from the NDB, which is set up by the emerging nations India, China, Brazil, Russia and South Africa.

&quot;India has huge unmet infrastructure funding needs..&nbsp;&nbsp; &nbsp;.USD 646 billion is required in next 5 years (for financing infrastructure),&quot; Jaitley said.

He said growth in emerging and developing countries is picking up and news from economies of BRICS countries is &quot;encouraging&quot;.

&quot;I hope that NDB will emerge as a development bank and help in funding of emerging economies,&quot; Jaitley added.

(PTI)

Jaitley was speaking at the second annual meeting of the New Development Bank (NDB)

Emerging markets face newer challenges in the form of inward looking policies of protectionism and increased geopolitical tension, Finance Minister Arun Jaitley said today as he pegged India's GDP growth at 7.7 per cent in 2018. Speaking at the second annual meeting of the New Development Bank (NDB) here, Jaitley said global growth is moving upwards and is expected to improve further in 2017-18. "Indian economy is expected to grow at 7.2 per cent in 2017 and at the rate of 7.7 per cent in 2018," he said. Jaitley said emerging market economies (EMEs) face newer challenges in the form of inward looking policies of protectionism of some economies, global financial condition, policies of the United States and increased geopolitical tension. He said India has sought USD 2 billion loans for various projects from the NDB, which is set up by the emerging nations India, China, Brazil, Russia and South Africa. "India has huge unmet infrastructure funding needs.. .USD 646 billion is required in next 5 years (for financing infrastructure)," Jaitley said. He said growth in emerging and developing countries is picking up and news from economies of BRICS countries is "encouraging". "I hope that NDB will emerge as a development bank and help in funding of emerging economies," Jaitley added. (PTI)

India's economy to grow at 7.2% in 2017: Arun Jaitley

India can ill-afford to take much pride in having the world&#39;s fastest growing large economy when it releases September quarter data on Wednesday, with businesses, farmers and families all suffering after the government&#39;s sudden demonetization drive.

Having taken credit for putting life back in a moribund economy when he took power 2-1/2 years ago, Prime Minister Narendra Modi&#39;s crackdown on tax dodgers and counterfeiters by removing 500 rupee and 1,000 rupee banknotes from circulation has taken the economy down a very bumpy road.

How bumpy depends who&#39;s talking, but almost everyone agrees the drag on growth is likely to last through next year.

&quot;The move will weigh on Gross Domestic Product (GDP) growth for a few quarters, dampening government revenues,&quot; warned credit ratings firm Moody&#39;s Investors Service. &quot;The decline in economic activity will lower corporate sales volumes and cash flows.&quot;

The quarterly gross domestic product data released on Wednesday won&#39;t show the ill-effects. July-September will be the last quarter before the impact is felt from Modi&#39;s bold and risky move this month to force people to deposit their hidden cash in banks, making it easy for the taxman to see.

The median estimate from a Reuters poll showed economists expect economic growth accelerated to 7.5 per cent in the September quarter from 7.1 per cent in the June quarter.

That&#39;s not as fast as the 7.9 per cent posted in the March quarter, but it had recovered momentum, and might have gone higher until Modi launched his attack on the so-called &quot;black economy&quot;.

While Modi has been praised for his intentions, people are wringing their hands over the cost of taking 86 per cent of the country&#39;s banknotes out of circulation virtually overnight.

The most optimistic forecasts suggest that India will finish this fiscal year in March with a respectable, but slightly lower growth rate of 7.3 per cent.

But the most pessimistic forecast, from Mumbai-based brokerage Ambit Capital, for a precipitous drop to 3.5 per cent growth shows just how worried people are. 
&nbsp;

Knock-on effects

With a small stock of smaller notes available and new bills of 500 and 2,000 rupee in short supply, Indians had to stand in snaking queues outside banks and cash machines to change their old notes.

The better off may have more money to change, but for the mass of Indians living on the margins the disruption and loss of earnings has caused real hardship.

Modi expects the cash situation to become normal by end-December, but critics say he is being over-optimistic.

Meantime, consumers are spending less, which is hurting small producers who, in turn, are being forced to scale back their activities.

As a consequence, supply chains at small, medium and even larger companies are breaking down. Trucks are stranded with no money for fuel, workers won&#39;t load goods for free, and distributors can&#39;t pay up. Wholesale markets in many cities are shut.

The cash crunch has jeopardised production of key commodities and hurt rural communities - just recovering after two years of drought - as farmers lack cash to buy seeds and fertiliser. As a result, the area under cultivation for India&#39;s winter crop has declined.

CMIE, an economic think tank, reckons the big banknote swap would cost at least $19 billion by the end of 2016 in foregone wages, lost business, and higher administrative expenses alone.

The liquidity shortage will retard efforts to revive private investment that has been plagued by weak external demand and a slow recovery in domestic demand.

And, despite the high economic growth rates seen over the past year-and-a-half, factories&#39; capacity utilization ratio remains stuck near their lowest level since 2009.

&quot;Given that the growth recovery has still not taken full hold, the impact of this demonetisation ... could delay the private corporate capex recovery,&quot; analysts at Morgan Stanley wrote in a note, adding that they don&#39;t expect that recovery to happen before 2018.

At least the potential for lower inflation holds out some hope that the Reserve Bank of India will extend its easing cycle with a quick interest rate cut.

&quot;The central bank might prefer to bring forward the rate cut to December to support growth and tap the favourable inflation outlook,&quot; said Radhika Rao, an economist with DBS Bank.

(Reuters)

The country will release September quarter data on Wednesday

India can ill-afford to take much pride in having the world's fastest growing large economy when it releases September quarter data on Wednesday, with businesses, farmers and families all suffering after the government's sudden demonetization drive. Having taken credit for putting life back in a moribund economy when he took power 2-1/2 years ago, Prime Minister Narendra Modi's crackdown on tax dodgers and counterfeiters by removing 500 rupee and 1,000 rupee banknotes from circulation has taken the economy down a very bumpy road. How bumpy depends who's talking, but almost everyone agrees the drag on growth is likely to last through next year. "The move will weigh on Gross Domestic Product (GDP) growth for a few quarters, dampening government revenues," warned credit ratings firm Moody's Investors Service. "The decline in economic activity will lower corporate sales volumes and cash flows." The quarterly gross domestic product data released on Wednesday won't show the ill-effects. July-September will be the last quarter before the impact is felt from Modi's bold and risky move this month to force people to deposit their hidden cash in banks, making it easy for the taxman to see. The median estimate from a Reuters poll showed economists expect economic growth accelerated to 7.5 per cent in the September quarter from 7.1 per cent in the June quarter. That's not as fast as the 7.9 per cent posted in the March quarter, but it had recovered momentum, and might have gone higher until Modi launched his attack on the so-called "black economy". While Modi has been praised for his intentions, people are wringing their hands over the cost of taking 86 per cent of the country's banknotes out of circulation virtually overnight. The most optimistic forecasts suggest that India will finish this fiscal year in March with a respectable, but slightly lower growth rate of 7.3 per cent. But the most pessimistic forecast, from Mumbai-based brokerage Ambit Capital, for a precipitous drop to 3.5 per cent growth shows just how worried people are. Knock-on effects With a small stock of smaller notes available and new bills of 500 and 2,000 rupee in short supply, Indians had to stand in snaking queues outside banks and cash machines to change their old notes. The better off may have more money to change, but for the mass of Indians living on the margins the disruption and loss of earnings has caused real hardship. Modi expects the cash situation to become normal by end-December, but critics say he is being over-optimistic. Meantime, consumers are spending less, which is hurting small producers who, in turn, are being forced to scale back their activities. As a consequence, supply chains at small, medium and even larger companies are breaking down. Trucks are stranded with no money for fuel, workers won't load goods for free, and distributors can't pay up. Wholesale markets in many cities are shut. The cash crunch has jeopardised production of key commodities and hurt rural communities - just recovering after two years of drought - as farmers lack cash to buy seeds and fertiliser. As a result, the area under cultivation for India's winter crop has declined. CMIE, an economic think tank, reckons the big banknote swap would cost at least $19 billion by the end of 2016 in foregone wages, lost business, and higher administrative expenses alone. The liquidity shortage will retard efforts to revive private investment that has been plagued by weak external demand and a slow recovery in domestic demand. And, despite the high economic growth rates seen over the past year-and-a-half, factories' capacity utilization ratio remains stuck near their lowest level since 2009. "Given that the growth recovery has still not taken full hold, the impact of this demonetisation ... could delay the private corporate capex recovery," analysts at Morgan Stanley wrote in a note, adding that they don't expect that recovery to happen before 2018. At least the potential for lower inflation holds out some hope that the Reserve Bank of India will extend its easing cycle with a quick interest rate cut. "The central bank might prefer to bring forward the rate cut to December to support growth and tap the favourable inflation outlook," said Radhika Rao, an economist with DBS Bank. (Reuters)

Chilled by demonetisation, India to take cold comfort from strong GDP

Canada on Monday said it would accept 30,000 immigrants into the country, setting the number as a new baseline for the admission of permanent residents.

The government said the majority of those allowed into the country will be selected as economic immigrants, news agency Reuters reported. Despite recommendations of increasing the number to help spur economic growth, the target remained unchanged from 2016&#39;s plan. It is, however, above the average of 259,542 immigrants admitted from 2011 to 2015.

Finance minister Bill Morneau&#39;s economic advisory council recently made a recommendation to increase Canada&#39;s annual immigration target to 450,000 over the next five years.

Immigration minister John McCallum agreed that more immigrants would be good policy but said the number was not conceivable for 2017. He told reporters that making the 300,000 target permanent laid the foundation for future immigration growth, reported Reuters.

&quot;I do believe it is true that more immigrants for Canada would be a good policy for demographic reasons. That number is a conceivable number for some date in the future, but certainly not for 2017.&quot;

Canada&#39;s ageing population, similar to many developing countries, poses a challenge for economic growth.

The government said that the number of immigrants accepted under the economic category will rise from 160,000 this year to 172,500 next year. The number of refugee will decrease to 40,000 from 55,800.

(With inputs from Reuters)

Despite recommendations to increase the number to help spur economic growth, the target remained unchanged from 2016's plan

Canada on Monday said it would accept 30,000 immigrants into the country, setting the number as a new baseline for the admission of permanent residents. The government said the majority of those allowed into the country will be selected as economic immigrants, news agency Reuters reported. Despite recommendations of increasing the number to help spur economic growth, the target remained unchanged from 2016's plan. It is, however, above the average of 259,542 immigrants admitted from 2011 to 2015. Finance minister Bill Morneau's economic advisory council recently made a recommendation to increase Canada's annual immigration target to 450,000 over the next five years. Immigration minister John McCallum agreed that more immigrants would be good policy but said the number was not conceivable for 2017. He told reporters that making the 300,000 target permanent laid the foundation for future immigration growth, reported Reuters. "I do believe it is true that more immigrants for Canada would be a good policy for demographic reasons. That number is a conceivable number for some date in the future, but certainly not for 2017." Canada's ageing population, similar to many developing countries, poses a challenge for economic growth. The government said that the number of immigrants accepted under the economic category will rise from 160,000 this year to 172,500 next year. The number of refugee will decrease to 40,000 from 55,800. (With inputs from Reuters)

Canada: Immigration target for 2017 set at 300,000 people

Former Wall Street banker Pedro Pablo Kuczynski was inaugurated as Peru&#39;s new president yesterday, vowing to kick-start the economy and unite a country torn by a photo-finish election. 
 
The 77-year-old centre-right economist extended an olive branch to defeated rival Keiko Fujimori&#39;s party, which controls Congress, saying he would need their help to pass reforms. 
 
He promised to work for all Peruvians, outlining his vision for a &quot;social revolution&quot; in his inaugural address before Congress. 
 
&quot;I will seek equity, equality and fraternity among all Peruvians,&quot; said the man known simply as PPK. 
 
Peru needs &quot;not just economic, but human growth,&quot; he said, vowing to extend basic services such as schools, hospitals and drinking water to the one-third of Peruvians who lack them. 
 
The normally staid Kuczynski, who is known as a technocrat with a stellar resume, choked up as he took the oath of office, then donned his new red and white presidential sash over his pinstriped suit. 
 
Peru is one of Latin America&#39;s fastest growing economies, but growth slowed under outgoing leftist president Ollanta Humala, from 6.5 per cent in 2011 to 3.3 percent last year. 
 
Kuczynski vowed to stimulate the economy, revive the key mining sector, fight the poverty that affects 22 per cent of Peruvians, crack down on corruption, and strengthen the police and prisons to reduce crime. 
 
The Fujimori problem 
 
Foreign investors and markets have welcomed the new president as a reliable pair of hands. 
 
&quot;Kuczynski&#39;s government is likely to remain highly supportive of foreign investment, with minimalist state intervention,&quot; said Diego Moya-Ocampos of consultancy IHS Country Risk. 
 
He predicted Kuczynski would seek to expand Peru&#39;s domestic refining and smelting capacity, and pointed out that his first scheduled trip is to China - which he called a key player in the president&#39;s strategy to make Peru a &quot;metallurgical powerhouse.&quot; 
 
But a large bump is lurking in the road.&nbsp;Kuczynski&#39;s party, the centre-right Peruvians for Change, has just 18 seats in the 130-member Congress. 
 
The new legislature is dominated by allies of Fujimori, the daughter of disgraced and jailed ex-president Alberto Fujimori.&nbsp;Her right-wing party, Popular Force, has 73 lawmakers in Congress. 
 
None of them applauded at any point during the inauguration, Kuczynski&#39;s camp complained.&nbsp;It could prove tough for the new president to advance his reform agenda. 
 
There may be lingering bad blood from the election. Fujimori took five days to concede as results trickled in from the remote reaches of the Peruvian Amazon. 
 
In the end she had little choice but to recognise defeat, by less than a quarter of a percentage point. 
 
The race opened old wounds dating back to the 1990s, when Fujimori&#39;s father was president. 
 
Now serving a 25-year prison sentence for massacres by an army death squad, Alberto Fujimori (1990-2000) is fondly remembered by some Peruvians for his populist streak, his ruthless crackdown on the leftist rebel group Shining Path and his management of a strong economy. 
 
But his authoritarian legacy was also heavy baggage for his daughter. 
 
Her 78-year-old father&#39;s supporters are now pressuring Kuczynski to pardon him. 
 
The president-elect has said he is willing to sign a law granting house arrest to elderly and ailing prisoners such as Fujimori, but will not issue a pardon. 
 
&#39;El Gringo&#39; 
 
Kuczynski, the son of a Jewish doctor who fled Nazi Germany, has had a long career in business and finance. 
 
Educated at Oxford University and Princeton, he has an impressive resume including stints as economy minister and a World Bank economist. 
 
He stressed his age and experience during the campaign. 
 
&quot;I&#39;m old, but my noggin is still working,&quot; he said.&nbsp;But he sometimes struggles to connect with ordinary Peruvians. 
 
He speaks Spanish with an American accent, betraying his long years in the United States. Some Peruvians call him &quot;El Gringo.&quot; 
 
Seeking to lighten the burden of his outsider status, he donned a traditional multicolored woolly hat at campaign rallies, played the flute and trotted out his mascot, a man-sized guinea pig - a symbol of Peru. 
 
(AFP)

The Pedro Kuczynski choked as he took the oath of office. He vowed to kick-start the economy and bring about a social revolution

Former Wall Street banker Pedro Pablo Kuczynski was inaugurated as Peru's new president yesterday, vowing to kick-start the economy and unite a country torn by a photo-finish election. The 77-year-old centre-right economist extended an olive branch to defeated rival Keiko Fujimori's party, which controls Congress, saying he would need their help to pass reforms. He promised to work for all Peruvians, outlining his vision for a "social revolution" in his inaugural address before Congress. "I will seek equity, equality and fraternity among all Peruvians," said the man known simply as PPK. Peru needs "not just economic, but human growth," he said, vowing to extend basic services such as schools, hospitals and drinking water to the one-third of Peruvians who lack them. The normally staid Kuczynski, who is known as a technocrat with a stellar resume, choked up as he took the oath of office, then donned his new red and white presidential sash over his pinstriped suit. Peru is one of Latin America's fastest growing economies, but growth slowed under outgoing leftist president Ollanta Humala, from 6.5 per cent in 2011 to 3.3 percent last year. Kuczynski vowed to stimulate the economy, revive the key mining sector, fight the poverty that affects 22 per cent of Peruvians, crack down on corruption, and strengthen the police and prisons to reduce crime. The Fujimori problem Foreign investors and markets have welcomed the new president as a reliable pair of hands. "Kuczynski's government is likely to remain highly supportive of foreign investment, with minimalist state intervention," said Diego Moya-Ocampos of consultancy IHS Country Risk. He predicted Kuczynski would seek to expand Peru's domestic refining and smelting capacity, and pointed out that his first scheduled trip is to China - which he called a key player in the president's strategy to make Peru a "metallurgical powerhouse." But a large bump is lurking in the road. Kuczynski's party, the centre-right Peruvians for Change, has just 18 seats in the 130-member Congress. The new legislature is dominated by allies of Fujimori, the daughter of disgraced and jailed ex-president Alberto Fujimori. Her right-wing party, Popular Force, has 73 lawmakers in Congress. None of them applauded at any point during the inauguration, Kuczynski's camp complained. It could prove tough for the new president to advance his reform agenda. There may be lingering bad blood from the election. Fujimori took five days to concede as results trickled in from the remote reaches of the Peruvian Amazon. In the end she had little choice but to recognise defeat, by less than a quarter of a percentage point. The race opened old wounds dating back to the 1990s, when Fujimori's father was president. Now serving a 25-year prison sentence for massacres by an army death squad, Alberto Fujimori (1990-2000) is fondly remembered by some Peruvians for his populist streak, his ruthless crackdown on the leftist rebel group Shining Path and his management of a strong economy. But his authoritarian legacy was also heavy baggage for his daughter. Her 78-year-old father's supporters are now pressuring Kuczynski to pardon him. The president-elect has said he is willing to sign a law granting house arrest to elderly and ailing prisoners such as Fujimori, but will not issue a pardon. 'El Gringo' Kuczynski, the son of a Jewish doctor who fled Nazi Germany, has had a long career in business and finance. Educated at Oxford University and Princeton, he has an impressive resume including stints as economy minister and a World Bank economist. He stressed his age and experience during the campaign. "I'm old, but my noggin is still working," he said. But he sometimes struggles to connect with ordinary Peruvians. He speaks Spanish with an American accent, betraying his long years in the United States. Some Peruvians call him "El Gringo." Seeking to lighten the burden of his outsider status, he donned a traditional multicolored woolly hat at campaign rallies, played the flute and trotted out his mascot, a man-sized guinea pig - a symbol of Peru. (AFP)

Former Wall Street banker Kuczynski sworn in as Peruvian president

South Korea aims to regulate the increasingly common ownership of pets in a bid to promote an unsupervised sector that the government sees as economic growth opportunity, and to crack down on animal abuse and neglect. 
 
Measures announced on Thursday will enable South Koreans to legally operate services for pets such as animal cafes, hotels and funeral parlours, while imposing stiffer punishment on breeders found using unsanitary or inhumane methods. 
 
Pets were once rare in South Korea, a country where the consumption of dog meat was widespread though it has declined sharply during the rapid modernization of recent decades. 
 
&quot;We know we are a bit late, but we are aiming to become a developed country in terms of the pet industry,&quot; Kang Chong-suk, director of the finance ministry&#39;s general policy coordination division, said in a telephone interview. 
 
&quot;There were absolutely no regulations and many illegal activities were being carried out.&quot; 
 
Nearly 22 per cent of South Korean households last year had at least one pet, up from 17.4 per cent five years earlier, a trend fuelled by the rise in single-person households. 
 
At the same time, there has been a jump in the number of abandoned pets. 
 
The government expects the measures will help the industry increase revenues from 1.8 trillion Won ($1.56 billion) now to 5.8 trillion Won in 2020. 
 
Under the plan, animal funeral facilities will be legalised, addressing complaints from pet owners over current law that says dead pets must be discarded, like household rubbish, in plastic garbage bags. 
 
New laws will also make it possible to start pet-related businesses like hotels, cafes and training centres. 
 
Pet cafes, where human customers can mingle with dogs and cats while having a cup of coffee, are increasingly popular in South Korea even though current law forbids the sale of food where animals can roam. 
 
The government will also introduce a veterinary nursing license and encourage insurers to develop more pet insurance policies. 
 
The measures are part of broader efforts to bolster various industries, including halal and kosher food production, the housing market and sports, as the government tries to find more sources of growth. 
 
&#39;TOO MANY PETS&#39; 
 
Fines for abandoning pets will be raised threefold from 1 million Won, while government support for animal shelters will be increased. 
 
Last year, 82,000 pets were abandoned or lost in South Korea, straining its 307 shelters, according to the government. 
 
&quot;They should have started this process a long time ago,&quot; said Kwon Beom-suk, a veterinarian in Seoul. 
 
&quot;We have too many pets in South Korea even though the pet culture has not matured yet.&quot; 
 
Fines will also be increased for unregistered or abusive animal-breeding facilities.&nbsp;About 1,000 commercial dog breeders are now operating, more than 80 per cent illegally, according to the government. 
 
Thursday&#39;s announcement comes amid public outrage over television reports showing abuse of dogs at some so-called puppy mills, including non-veterinarians performing crude caesarean sections on pregnant dogs.&nbsp;Kang said the government&#39;s planning preceded the broadcasts. 
 
($1 = 1,154.6700 Won) 
 
(Reuters)

New measures would enable South Koreans to legally operate services for pets such as animal cafes, hotels and funeral parlours

South Korea aims to regulate the increasingly common ownership of pets in a bid to promote an unsupervised sector that the government sees as economic growth opportunity, and to crack down on animal abuse and neglect. Measures announced on Thursday will enable South Koreans to legally operate services for pets such as animal cafes, hotels and funeral parlours, while imposing stiffer punishment on breeders found using unsanitary or inhumane methods. Pets were once rare in South Korea, a country where the consumption of dog meat was widespread though it has declined sharply during the rapid modernization of recent decades. "We know we are a bit late, but we are aiming to become a developed country in terms of the pet industry," Kang Chong-suk, director of the finance ministry's general policy coordination division, said in a telephone interview. "There were absolutely no regulations and many illegal activities were being carried out." Nearly 22 per cent of South Korean households last year had at least one pet, up from 17.4 per cent five years earlier, a trend fuelled by the rise in single-person households. At the same time, there has been a jump in the number of abandoned pets. The government expects the measures will help the industry increase revenues from 1.8 trillion Won ($1.56 billion) now to 5.8 trillion Won in 2020. Under the plan, animal funeral facilities will be legalised, addressing complaints from pet owners over current law that says dead pets must be discarded, like household rubbish, in plastic garbage bags. New laws will also make it possible to start pet-related businesses like hotels, cafes and training centres. Pet cafes, where human customers can mingle with dogs and cats while having a cup of coffee, are increasingly popular in South Korea even though current law forbids the sale of food where animals can roam. The government will also introduce a veterinary nursing license and encourage insurers to develop more pet insurance policies. The measures are part of broader efforts to bolster various industries, including halal and kosher food production, the housing market and sports, as the government tries to find more sources of growth. 'TOO MANY PETS' Fines for abandoning pets will be raised threefold from 1 million Won, while government support for animal shelters will be increased. Last year, 82,000 pets were abandoned or lost in South Korea, straining its 307 shelters, according to the government. "They should have started this process a long time ago," said Kwon Beom-suk, a veterinarian in Seoul. "We have too many pets in South Korea even though the pet culture has not matured yet." Fines will also be increased for unregistered or abusive animal-breeding facilities. About 1,000 commercial dog breeders are now operating, more than 80 per cent illegally, according to the government. Thursday's announcement comes amid public outrage over television reports showing abuse of dogs at some so-called puppy mills, including non-veterinarians performing crude caesarean sections on pregnant dogs. Kang said the government's planning preceded the broadcasts. ($1 = 1,154.6700 Won) (Reuters)

South Korea aims to overhaul its pet sector

Britain&#39;s economic growth slowed in the first quarter from the previous three months, official data confirmed Thursday, as business investment faltered on uncertainty before the Brexit referendum. 
 
Gross domestic product (GDP) grew 0.4 per cent, the Office for National Statistics (ONS) said in a final estimate for the period between January and March, ahead of the June 23 European Union (EU) membership vote. 
 
That was unchanged from the previous figure, but marked a slowdown from the fourth quarter of 2015, which was revised up to 0.7 per cent expansion from 0.6 per cent. 
 
&quot;Business investment was highly likely limited by increased business caution ahead of the EU membership referendum,&quot; said IHS Global Insight economist Howard Archer. 
 
&quot;It was also disappointing to see exports of goods and services dip.&quot; 
 
In a shock referendum last Thursday, Britons voted to quit the EU in a so-called Brexit - despite warnings from the government and the International Monetary Fund of a potential recession. 
 
The outcome sparked the resignation of British Prime Minister David Cameron who backed the unsuccessful Remain campaign and will step down in the autumn. 
 
&quot;We can be confident that the economic recovery has lost further momentum in the second quarter as Brexit risk began to loom large,&quot; added economist Samuel Tombs at Pantheon Macro. 
 
&quot;Even if the referendum had led to continuation of the status quo, the UK&#39;s economic recovery would be slowing in response to tighter fiscal policy, moderating employment growth and slowly rising inflation. 
 
&quot;The referendum has turned a bad outlook into a terrible one, and we now expect collapsing business investment, a hiring freeze and much higher inflation to push the economy into recession.&quot; 
 
The technical definition of a recession is two or more successive quarters of economic contraction. 
 
(AFP)

With uncertainty looming before Brexit referendum, Britain's several economic sectors are adversely affected

Britain's economic growth slowed in the first quarter from the previous three months, official data confirmed Thursday, as business investment faltered on uncertainty before the Brexit referendum. Gross domestic product (GDP) grew 0.4 per cent, the Office for National Statistics (ONS) said in a final estimate for the period between January and March, ahead of the June 23 European Union (EU) membership vote. That was unchanged from the previous figure, but marked a slowdown from the fourth quarter of 2015, which was revised up to 0.7 per cent expansion from 0.6 per cent. "Business investment was highly likely limited by increased business caution ahead of the EU membership referendum," said IHS Global Insight economist Howard Archer. "It was also disappointing to see exports of goods and services dip." In a shock referendum last Thursday, Britons voted to quit the EU in a so-called Brexit - despite warnings from the government and the International Monetary Fund of a potential recession. The outcome sparked the resignation of British Prime Minister David Cameron who backed the unsuccessful Remain campaign and will step down in the autumn. "We can be confident that the economic recovery has lost further momentum in the second quarter as Brexit risk began to loom large," added economist Samuel Tombs at Pantheon Macro. "Even if the referendum had led to continuation of the status quo, the UK's economic recovery would be slowing in response to tighter fiscal policy, moderating employment growth and slowly rising inflation. "The referendum has turned a bad outlook into a terrible one, and we now expect collapsing business investment, a hiring freeze and much higher inflation to push the economy into recession." The technical definition of a recession is two or more successive quarters of economic contraction. (AFP)

Britain's economic growth slows, says official data

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