Explain the impact of the First World War on Britain's economy

Britain which was a leading economy of the world before the First World War faced a prolonged crisis
(i) While Britain was pre-occupied with war, industries had developed in Japan and India. After the war, Britain found it difficult to
recapture its earlier position.
{ii) Britain has borrowed liberally from the USA for its war time expenditure, thus at the end of the war, Britain was burdened with huge external debt.
(iii) After the war, production contracted which led to huge job losses. In 1921, one in every
five British workers was out of work. Anxiety and uncertainty about work became an ,
enduring part of the post-war time.