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UK economy shrank by 0.1% in April as Iran war held back growth

UK economy shrank by 0.1% in April as Iran war held back growth

Summary

The UK economy shrank by 0.1% in April, partly due to rising energy prices linked to the war involving Iran. This decline came after a 0.3% growth in March and suggests the UK’s economy may shrink further in the second quarter.

Key Facts

  • The UK economy fell by 0.1% in April.
  • Economic growth in March was 0.3%.
  • Rising energy prices from the Iran conflict affected the UK economy.
  • Iran closed the Strait of Hormuz, a vital global shipping route, impacting trade.
  • The UK’s strong growth earlier in the year slowed down due to these factors.
  • Economists worry the UK economy could shrink in the second quarter of the year.
  • Chancellor Rachel Reeves said the UK economy was strong before this crisis.
  • Reeves criticized President Trump’s role in the conflict as a cause of economic problems.
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