Home ›› World ›› Europe

ONLINE EDITION

UK economy closes in on recession

AFP . London
12 Aug 2022 13:07:13 | Update: 12 Aug 2022 13:14:48
UK economy closes in on recession
A man walks past a closed shop advertising a sale in Liverpool, Britain, February 23, 2021. — Reuters Photo

Britain's economy shrank in the second quarter, official data showed Friday, as it heads towards recession.

UK gross domestic product dropped 0.1 per cent in the April-June period after a rise of 0.8 per cent in the first quarter, the Office for National Statistics said in a statement.

The Bank of England expects the economy to fall into recession this year, which would occur should GDP contract also in the third quarter.

ALSO READ - UK consumer energy debt already at record levels

"With May's growth revised down a little and June showing a notable fall, overall the economy shrank slightly in the second quarter," said ONS director of economic statistics Darren Morgan.

"Health was the biggest reason the economy contracted as both the (Covid) test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter."

The UK economy slumped 0.6 per cent in June, the ONS added.

×