UK economy shrank by 0.1% in April following impact of Iran war

UK economy shrank by 0.1% in April following impact of Iran war Rachel Reeves acknowledged that the war in the Middle East was hitting the economy - Bookmark - CommentsGo to comments Britain’s economy has contracted for the first time in eight months amid signs that the Iran war is beginning to take its toll on some sectors. The Office for National Statistics (ONS) said gross domestic product (GDP) declined by 0.1 per cent in April in a sharp pullback from growth of 0.3 per cent in March and 0.4 per cent in February. The decline was driven by a 0.2 per cent fall in services, which was partially offset by a 0.1 per cent rise in construction and 0.4 per cent growth in manufacturing. In the three months to April, GDP grew by 0.7 per cent, according to the ONS. Liz McKeown, ONS director of economic statistics, said: “The economy grew in the latest three months as a whole, reflecting strong growth in February and March. “This was despite April showing a small fall.” Chancellor of the Exchequer Rachel Reeves acknowledged the war in the Middle East was hitting the economy. She said: “Before the conflict in the Middle East, growth was higher than expected and inflation was falling. This is not a war we wanted or joined, but one that will have an impact at home. “Our economic plan is the right one, with both the IMF and OECD upgrading their forecasts for growth recently. “The choices I have made as Chancellor mean our economy is in a stronger position to deal with the costs of the war, and we are getting on with the job of building a stronger and more secure economy.” Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments [Image text:] BREAKING NEWS