London, Aug 12 The gross domestic product (GDP) of the United Kingdom suffered a fall of 0.1% between April and June, compared to growth of 0.8% in the previous three months, the Office for National Statistics (ONS) reported on Friday. ).
In the second quarter, the services sector -the country’s economic lung- fell by 0.4%, the industrial sector did not change, while construction rose by 2.3%, according to data released today.
This drop in GDP comes after the Bank of England warned last week that the UK may enter a recession – two consecutive quarters of economic contraction – at the end of the year.
In June, according to the ONS, the GDP fell 0.6% after the services sector fell 0.5%, the industrial sector fell 1.6% and construction fell 1.4%.
The English entity recently raised interest rates from 1.25% to 1.75% in order to control year-on-year inflation, which is at 9.4%, but is expected to rise to 13% by the end of the year.
This increase responds to the rise in energy prices due to the impact of the war in Ukraine, as well as the recovery of the global economy after the covid-19 pandemic.
ONS statistics director Darren Morgan said the economy contracted slightly after growth in May but with a “remarkable drop” in June.
Retailers faced a difficult quarter, but growth was recorded in hotels, bars, hairdressers and outdoor events, partly due to the celebration of the Platinum Jubilee (70 years of the throne of Queen Elizabeth II), it added.
Economy Minister Nadhim Zahawi said in a note that the economy showed strength after the pandemic and stressed that the country will be able to “again overcome global challenges.”
“I know that times are tough and that people will be worried about rising prices and slowing growth, which is why I am determined to work with the Bank of England to control inflation and grow the economy,” he said. Head of Economy. EFE