What were the main causes of the decline of British economy and why is it a relative decline?

In the history, Britain was once called a country that the sun never set. This strongly shows the power of the Britain economy. As we all know, Britain was the first industrialized nation in the world and has remain economic giant for the past two centuries. However, after the World War I, Britain suffered great losses, the economy in Britain has been declining, and by that time, the international financial center has been shifted from London to New York, which leads to the trade amount has been decreasing. Therefore, there’s no denying that the World War I is one of the main causes of the decline of Britain economy.

Although Britain remains one of the Group of Seven after World War II, the British economy experienced a period of great difficulty and relative economic decline.(A guide to English-Speaking Countries, 45). The main causes and relative decline of British economy are as follows: Firstly, Britain suffered great losses in the two World Wars. It went heavily into debt to finance both wars, which resulted in economic recession during postwar period. Secondly, by the mid-20th century, the era of the British Empire was over.

Although large colonies have been taken up by Britain, they have won independence step by step. Owing to that, Britain lost plenty of labor force, raw materials, and territories, which also cause the recession in