The largest in two years .. The British economy is shrinking in April

Official data on Thursday showed that the British economic output shrank in April, reflecting the shock waves caused by US President Donald Trump’s announcement of the imposition of large -scale customs duties.

The gross domestic product is more expected by 0.3 percent in April compared to March, which is the largest monthly decrease since October 2023, and a Reuters poll showed that a contraction was expected by 0.1 percent after registering 0.2 percent in March.

“After the increase in each of the previous four months, April witnessed the largest monthly decline ever in goods exports to the United States with a decline in most types of commodities, after the imposition of customs duties recently,” said Liz McChyun, director of economic statistics at the British National Statistical Office.

The office stated that a decline in the real estate and legal sectors in April after the end of the temporary tax exemption to buy homes, which contributed 0.2 percentage points from the decline of 0.3 percentage points in the output in April. Car manufacturers also recorded a decrease in production and exports to the United States and the European Union.

The British economy expanded 0.7 percent in the first quarter of 2025, overcoming growth in other countries in the Group of Seven, prompting the Bank of England to raise its expectations for the whole year to one percent last month.

However, the Bank of England reduced its growth forecast for 2026 to 1.25 percent and said it expected customs duties to reduce British output by 0.3 percent in three years.