His economy UK He shrunk for the first time in six months, questioning whether Prime Minister Kir Starmer can achieve the development based on funding his government’s ambitions for spending.
The UK’s gross domestic product (GDP) decreased by 0.3% in April, the National Statistical Service announced today (12.6.2025). Economists involved in Bloomberg survey had predicted a 0.1%decline. Services and manufacturing shrunk, while constructions increased. Industrial production was negatively 0.6% in April on a monthly basis.
Exports of goods to the US including valuable metals declined in April to the largest amount of 2 billion pounds ($ 2.71 billion) – compared to March, which, according to the National Statistical Service, “is probably linked to the implementation of tariffs on the US.” Sales to the US at 4.1 billion pounds, the lowest level since February 2022.
Exports of machinery and transport equipment decreased by £ 800 million due to the fall of car missions. Exports of chemicals decreased by £ 300 million. Imports from the US have slipped by £ 400m to £ 4.7 billion. The total commercial deficit of goods and services with the rest of the world expanded by 4.9 billion pounds to 11.5 billion pounds in three months to April 2025.
Economists expect only 0.1%growth, a reality for Starmer, who has repeatedly welcomed Britain that has surpassed the team of seven (G7) in the first quarter as proof that the economy has changed the page.
The Starmer Labor Government is based on the continuation of growth potential in early 2025 to help fund plans to revitalize the public services described by Finance Minister Rachel Reeves yesterday Wednesday.
However, a dangerous strategy could be proven, as the Bank of England and forecasts examined by Bloomberg expect growth that growth will slowly slow down from 0.7% in the first quarter. Growth is expected to be on average only 0.3% per quarter by the end of 2026, increasing the prospect that Reeves should again increase taxes to maintain the budget deficit under control.
The weakness in April probably reflects the result of the return of the temporary agents that stimulated in the first quarter, including the threat of US duties that forced the manufacturers to rush to export.