- Britain's economy contracted by 0.1 per cent in April, marking the first decline in eight months, following growth in March and February.
- The downturn was primarily driven by a 0.2 per cent fall in the services sector, particularly a 4.3 per cent drop in arts, entertainment, and recreation, and a 9.1 per cent contraction in sports due to cancelled events in the Middle East.
- Chancellor Rachel Reeves acknowledged that the conflict in the Middle East is impacting the UK economy, noting its effect on growth and inflation.
- The economic figures are fuelling concerns that the Middle East conflict will significantly affect Britain's economy through rising fuel and energy costs.
- Economists predict that after a strong start to the year, GDP growth will progressively slow, with some forecasting a potential 'flirting with recession' scenario.
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