Editor's PickForexUK economy shrinks by 0.6 per cent as Britain heads for winter recession

August 12, 2022

The UK economy contracted by 0.6 in June and shrank 0.1 per cent between April and June, compared to growth of 0.8 per cent in the previous three months, the Office for National Statistics said this morning.

Commenting on the gross domestic product (GDP) figures that showed a 0.1 per cent contraction in the second quarter of the year, Office for National Statistics director of economic statistics Darren Morgan said: “With May’s growth revised down a little and June showing a notable fall, overall the economy shrank slightly in the second quarter.”

He added: “Health was the biggest reason the economy contracted as both the test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter.

“These were partially offset by growth in hotels, bars, hairdressers and outdoor events across the quarter, partly as a result of people celebrating the Platinum Jubilee.”

The Chancellor of the Exchequer, Nadhim Zahawi said this morning “our economy showed incredible resilience following the pandemic and I am confident we can pull through these global challenges again.”

He added that “I know that times are tough and people will be concerned about rising prices and slowing growth, and that’s why I’m determined to work with the Bank of England to get inflation under control and grow the economy.

“The Government is providing billions of pounds of help for households with rising costs, including £1200 for eight million of the most vulnerable households,” Zahawi concluded.

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