The British economy was negatively surprised by the April result. The country’s gross domestic product unexpectedly fell, at its fastest pace in more than a year, according to a Bloomberg report.
Photo: Reuters / Toby Melville / File Photo / Forum
According to data provided on Monday by the Office for National Statistics (ONS) in April 2022, the UK economy contracted by 0.3 percent. On a monthly basis, an increase of 0.1% was expected. After a 0.1 percent decrease. in March.
The report shows that the main drag was in the services sector, with the healthcare sector performing particularly poorly, declining by 5.6 percent. Otherwise, the economy would probably have grown by 0.1%.
The Office for National Statistics asserts that despite the highest inflation rate in years, households have shown high resilience, as shown by up to 2.6%. Growth in consumer-driven industries is fueled by growth in retail sales.
Peak inflation is expected to come in October at the earliest, when energy bills will rise again, signaling further monetary tightening by the Bank of England. The interest rate may be raised again this Thursday (16.06). Speculation assumes an increase in the reference rate to 1.25%, the highest level since 2009. In line with expectations, next year it is set to exceed the 3% level.
The Organization for Economic Co-operation and Development estimates that GDP will rise by 3.6% this year and slow to 0.0% next year. It is the weakest forecast for 2023 among all G-20 countries except Russia.
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