UK Economy Shrinks in May 2025
The UK economy contracted by 0.1% in May 2025, with production output and construction showing weaknesses. Despite a trade deal with the US, the UK faces economic challenges ahead, with growth expected to slow for the rest of the year. Analysts predict a lackluster 1% growth rate for 2025.
The U.K. economy contracted by 0.1% in May, according to the latest data from the Office for National Statistics. Analysts had expected a 0.1% expansion. Production output fell by 0.9% and construction by 0.6%. Finance Minister Rachel Reeves aims to boost economic growth and reduce the budget deficit.
In April, the economy shrank by 0.3% due to tax rises and global market uncertainty caused by U.S. President Donald Trump's tariffs. Despite a balanced trading relationship with the U.S., the U.K. faced a 10% tariff. A trade deal with the U.S. has been reached, but economic challenges persist.
Economists predict slower growth for the rest of the year, with the Bank of England forecasting a 1% growth rate for 2025. Deutsche Bank's chief U.K. economist expects modest growth in May but warns of downside risks to future projections.
This is a breaking news story, please check for further updates.
According to the source: CNBC.
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