- Post war economic recovery proved difficult. Britain, which was the world’s leading economy in the pre-war period, in particular, faced a prolonged crisis.
- While Britain was pre occupied with war, industries had developed in India and Japan.
- After the war, Britain found it difficult to recapture its earlier position of dominance in the Indian market, and to compete with Japan internationally.
- To finance war expenditures, Britain had borrowed liberally from the US.
- This meant that at the end of the war Britain was burdened with huge external debts.