Growth in UK Film Industry Lift Economy in Q2

The British economy was able to accelerate slightly during the second quarter after a lackluster growth at the beginning of 2017. The little speed of Britain is driven by the services sector and the breakthrough in the film industry, as indicated in the official data showed on Wednesday.

This quarter gained 0.3 percent growth compared with the 0.2 percent recorded in the Q1, the results could possibly trigger expectations that the Bank of England will maintain the interest rates steady next week with a record low level.

In 2016, the economy of Britain increased by 1.8 percent which is the fastest, compared with other seven largest major advanced economies in the world, regardless of the rampant projections about recession after the Brexit vote. However, the referendum caused an extensive decline towards the value of the pound and moved the inflation up, gnawed at the disposable income of consumer this year.

The services sector alone is the economic growth driver for the Q2 and supported the retailers, motion picture activities and hotels and restaurants.

According to the Office for National Statistics (ONS), the fast-growing film industry of UK rose by 72 percent on 2014, which likely raise tax credits proposed by the former finance minister George Osborne. Moreover, the movies released from April to June also helped.

On Monday, the International Monetary Fund cut its 2017 economic forecast for the United Kingdom, showing predictions of 1.7 percent expansion versus with the 2.0 percent earlier estimate. But foresees a decline to 1.5 percent next year.