UK economy shrank by 0.1% in April as Iran war held back growth
GDP hit by higher energy prices caused by Middle East conflict, after 3% rise in March
The UK economy contracted by 0.1% in April as the Iran war began to take its toll on growth, official figures show.
As energy prices have risen as a result of the conflict, after Iran closed off the strait of Hormuz – a key shipping route for global trade – the UK’s strong expansion in the first quarter had been expected to slide into reverse.
The fall in gross domestic product in April followed a 0.3% increase in March, according to the Office for National Statistics.
The data will underline fears that the UK economy will contract in the second quarter of the year.
The chancellor, Rachel Reeves, has sought to argue that the economy was strong as it entered the crisis and has criticised Donald Trump’s “folly” in unleashing the conflict.
More details soon …