economy
UK economy shrank 0.1% in April as Iran conflict weighed on growth
U.K. GDP fell 0.1% in April as services activity declined and companies cited pressure from the Middle East conflict.
TL;DR
- U.K. economy shrank by 0.1% in April.
- Services activity contracted by 0.2%, the main driver of negative growth.
- Sports, amusement, and recreation activities saw a significant fall of 9.1%.
- Companies reported reduced turnover and increased prices due to the Middle East conflict.
- The conflict has sparked supply constraints in global energy markets, leading to a resurgence of inflation.
- The Bank of England is unlikely to cut interest rates next week following the GDP decline.
- The International Monetary Fund forecasts U.K. growth of 0.8% in 2026.