Log In

UK Economy Shrinks By More Than Expected After Trump Tariffs Hit

Published 1 day ago2 minute read

Services shrank by 0.4% and production by 0.6%, but construction moved in the opposite direction, growing by 0.9%.

Economists had expected a 0.1% contraction in April after growth of 0.2% in March.

The slowdown has been blamed on the financial uncertainty caused by steep tariffs imposed by Donald Trump.

“After increasing for each of the four preceding months, April saw the largest monthly fall on record in goods exports to the United States with decreases seen across most types of goods, following the recent introduction of tariffs,” Liz McKeown, director of economic statistics at the ONS, said.

The data shows US exports fell by £2bn.

April also saw a number of bill rises for businesses and households.

There was a hike in national insurance contributions and the minimum wage, as well as a rise in council tax, car tax, energy, water and broadband bills.

Basically, GDP is a tool used to assess the size and health of an economy.

It stands for gross domestic product and measures the monetary value of final goods and services produced in the country over a given period.

Generally, if GDP is growing and inflation is in check, it’s a strong sign that the economy is doing well, with more jobs and better wages available, and people spending more money.

If it’s falling, it signals the economy is doing badly, often bringing with it lower incomes and job cuts.

Governments, businesses and economists monitor GDP growth among other indicators to understand where the economy stands – and where it’s headed.

Origin:
publisher logo
Trending News

Recommended Articles

Loading...

You may also like...