In April 2025, the UK’s GDP fell by 0.3%, its worst drop since October 2023. The services sector saw a decline of 0.4%, driven by rising utility bills and the end of tax breaks, indicating broader economic challenges.
Exports towards the US faced a severe downturn as new tariffs from the Trump administration came into effect, exacerbating the negative growth in the UK economy.
Chancellor Rachel Reeves acknowledged the troubling figures while stressing the need for growth. With increasing expectations for interest rate cuts amid job market weaknesses, the economic outlook remains uncertain.
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