U.K. economy contracts in the second quarter as cost-of-living crisis bites

3 yıl önce

Shoppers wearing protective face masks walk through the rain on Oxford Street in London on June 18, 2020, as some non-essential retailers reopen from their coronavirus shutdown.

Tolga Akmen/AFP/Getty Images

The U.K. economy contracted in the second quarter of 2022, as the country's cost-of-living crisis hit home.

Official figures published Thursday showed that gross domestic product (GDP) shrank by 0.1% quarter on quarter in the second three months of the year, less than the 0.3% contraction expected by analysts.

It comes after GDP expanded by 0.8% in the first quarter of the year.

Last week, theÂ Bank of EnglandÂ warned that it expects theÂ U.K. economy to enter its longest recession since the global financial crisisÂ in the fourth quarter. Inflation, meanwhile, is projected to peak above 13% in October.

Monthly estimates showed that GDP fell 0.6% in June, less than the 1.3% consensus forecast.

This is a developing news story and will be updated shortly.