Alarm Bells Start Ringing for U.K. Economy

Having long been considered one of the most stable democracies in the world, Britain will hold a new general election on June 8 -- barely two years after the last. However, with the Conservative Party on course for securing a comfortable majority, political uncertainty may not be the biggest risk facing the U.K. A weakening economy could well pose a bigger threat.

Ever since the U.K. voted to leave the European Union in June, economists have predicted that Brexit would inevitably weigh on growth. So far, the U.K. economy has defied the gloom, expanding by 1.8 percent in 2016. The main reason behind this resilience has been consumption, as shoppers continued to take to the high streets, driving household spending up by 2.8 percent for the year.