June 17, 2022
Fears about the UK economy’s prospects have intensified since it contracted again in April, with firms feeling the pinch from rising costs.
According to the Office for National Statistics, the economy dropped by 0.3 percent in April after shrinking by 0.1 percent in March.
The April figure was lower than predicted, marking the first time the economy has shrunk for two months in a row since Covid.
According to some observers, the United Kingdom is on the verge of entering a recession.
Rising prices have impacted both individuals and businesses, with prices increasing at their quickest rate in 40 years due to record-high fuel and energy expenses.
The Bank of England has warned that the UK is on the verge of a “sharp economic slowdown,” with inflation – the rate at which prices grow – expected to reach more than 10% by the end of the year.
All three major economic sectors – services, manufacturing, and production – shrank in April for the first time since January 2021.
The main cause of April’s contraction, according to the ONS, was the shutting down of the NHS’s Covid Test and Trace operation.
Source: BBC
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
