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UK economy figures not as bad as they look despite GDP fall, analysts say
The UK economy unexpectedly shrank in May, even after the worst of Donald Trump's tariffs were paused, official figures showed.
A standard measure of economic growth, gross domestic product (GDP), contracted 0.1% in May, according to the Office for National Statistics (ONS). Rather than a fall being anticipated, growth of 0.1% was forecast by economists polled by Reuters as big falls in production and construction were seen.
It followed a 0.3% contraction in April, when Mr Trump announced his country-specific tariffs and sparked a global trade war. A 90-day pause on these import taxes, which has been extended, allowed more normality to resume.
This was borne out by other figures released by the ONS on Friday. Exports to the United States rose £300m but "remained relatively low" following a "substantial decrease" in April, the data said.
Overall, there was a "large rise in goods imports and a fall in goods exports". A 'disappointing' but mixed picture It's "disappointing" news, Chancellor Rachel Reeves said.
She and the government as a whole have repeatedly said growing the economy was their number one priority. "I am determined to kickstart economic growth and deliver on that promise.
Amir Nisi
Creative and experienced content writer with 6+ years of experience lazy to create unique content strategy for News5 to turn website visitors into customers.
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