The UK economy unexpectedly fell in the second consecutive month in May. GDP shrunk 0.1 % in May, after 0.3 % contraction in April, the National Statistics office said in a statement on Friday.
These figures face challenges faced by Prime Minister Keer Strandmer and his labor government as it fights global unwanted -lightments on American tariffs and inflation.
Following fiscal issues due to welfare deduction for millions of pensioners and its U-turn on winter fuel payments, government spending schemes depend a lot on economic development.
Britain’s Finance Minister called news ‘disappointing’
UK Finance Minister Rhel Reeves prepared the latest GDP figures as “disappointing” and said “more to do.” He is firm to “kickstart economic growth and distribute on that celebrity,” he said in a statement on Friday.
Labor has promised to cut red tape and has launched a multi-affordable pound investment scheme focused on weak National Health Services (NHS) and collapsing infrastructure to promote the economy.
Office data for National Statistics revealed that after a record in April, UK exports to the United States in May increased $ 400 million (€ 340 million),
Liz McDown, ONS Director of Economic Statistics, said that in May there is “significant decline in production and construction affecting GDP”.
He said that the decline in production was “external, car manufacture of oil and gas, and often-neratic pharmaceutical industry”.
Tax brakes and tariffs are afraid of UK’s initial 2025 increase
The UK economy expanded rapidly in the first quarter of 2025, increasing the growth of other countries in the group of seven advanced economies.
However, most of the growth in early 2025 was likely to be associated with the end of tax break for some domestic purchase in April, which promoted the region before the deadline, and a crowd to defeat high American import tapro by manufacturers.
Britain’s economy appears to be suffering from a similar fortune for Germany’s own dull economy. The German government estimated its growth up to zero in April, blaming US President Donald Trump’s impact of trade policies.
Edited by: Alex Berry
