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Britain’s economic recovery has slowed as supply disruptions persist.



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Image A supermarket in Manchester, England, in September. Retail sales fell in Britain in the third quarter, partly because of difficulties distributing goods.Credit…Jon Super/Associated PressThe British economy’s recovery slowed through the summer, delaying its return to its prepandemic size as supply shortages hampered businesses and exports declined.Gross domestic product grew 1.3 percent in the third quarter, down from 5.5 percent in the previous three months, the Office for National Statistics said on Thursday. The growth was driven by spending on services, especially in hotels, restaurants and entertainment as the last of the major pandemic restrictions were lifted in July and people vacationed in the country. A return to in-person doctor appointments also boosted the growth data.But the recovery was weaker in other sectors. Retail sales fell as well as car sales because of the global shortage of semiconductors. Supply chain disruptions and bottlenecks have held back growth in Britain and are expected to last longer than previously anticipated. It’s a problem afflicting other countries, including Germany. There have been backups at Britain’s ports and difficulties distributing goods.The changes to migration and trade because of Brexit, including fewer European Union workers and a stricter customs regime, have exacerbated the supply bottlenecks, according to the Office for Budget Responsibility, which provides independent forecasts for the British government.Exports fell nearly 2 percent over the previous quarter, partly because of a decline in the export of transport equipment and machinery.Britain’s “unique Brexit-related issues,” including additional customs paperwork, food safety checks and hurdles to tariff-free trade with the European Union, its biggest trading partner, “no doubt amplify the port and transport challenges,” Kallum Pickering, an economist at Berenberg Bank, wrote in a note to clients.The slowing momentum in the world’s recovery from the pandemic has led to downgrades of global and British growth forecasts. The Bank of England said last week the British economy would grow 7 percent this year, reducing its forecast by a quarter percentage point. It cut a whole percentage point off growth for 2022 — …

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