(i) The post-war economic recovery proved difficult as the heavy expenditure on the World War I weakened the British economy (ii) While Britain was preoccupied with war, industries had development in Japan and India. So now Britain had to face competition from these countries, especially from Japan. (iii) To finance war expenditures. Britain had borrowed liberally from the United States (US). This meant that at the end of the war. Britain was burdened with huge external debts. (iv) The war had led to an economic boom, i.e., to a large increase in demand, production, prices and employment. When the war boom ended production contracted, employment and unemployment increased. (v) The economic hardship of the war period forced the people of British colonies against them. For example. Non-Cooperation movement was launched in India.