Great Britain entered the First World War with a strong economy, but the war had a significant negative impact on the British economy. The war led to a sharp increase in government spending and borrowing, and by the end of the war, Britain's national debt had increased by over 250%. The war also disrupted international trade and led to a decline in industrial production in Britain. As a result, Britain's economy was severely damaged by the war, and it took many years for it to fully recover.