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Economics

UK Economy Shrinks Unexpectedly

  • Figures reduce the risk of a half-point rise in interest rates
  • CBI calls on government to spur growth and business investment
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WATCH: The unexpected fall causes a dilemma for BOE policy makers. Lizzy Burden reports.Source: Bloomberg
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The UK economy shrank in April at the sharpest pace in more than a year as the government wound down Covid testing, highlighting risks that a broader contraction is under way.

Gross domestic product fell 0.3% from March when output declined 0.1%, the Office for National Statistics said Monday. A gain of 0.1% was predicted by economists.