UK economy shrinks as Britain braces for recession – ‘flat-lining!’

Gordon Brown issues warning about inflation and recession

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The economy contracted by 0.1 percent according to the latest figures from the Office for National Statistics (ONS). It compares to the first three months of the year, when economic activity grew according to Gross Domestic Product (GDP) figures.

Andrew Neil, chairman of the Spectator, gave a damning verdict when it comes to the economy, via Twitter this morning.

He said: “UK economy shrank by 0.1 percent in Q2. Essentially flat-lining.”

Alice Haine, Personal Finance Analyst at BestInvest, suggested a GDP contraction was “always on the cards”.

She pointed towards a “battered” economy, substantially shaken by the cost of living crisis, and wider challenges caused by the ongoing conflict in Ukraine.

Ms Haine continued: “While a decline of 0.6 percent in June was lower than expected, it was exacerbated by May’s surprise expansion of 0.4 percent on the back of the celebrations around the extra Jubilee bank holiday. 

“Despite May’s positive GDP figure, the economy still contracted marginally by 0.1 percent across the second quarter.”

More to follow…

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