The British economy has suffered the worst monthly contraction since 2023

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The UK economy suffered from its worst contraction in almost two years in April, when the trade war, Donald Trump, issued exports to the United States and wore tax increases in the services sector, confirming the challenge facing Chancellor Rachel Reeves in promoting growth.

The decrease in GDP was 0.3 percent in April was the most severe since October 2023 and less than 0.1 percent contrast to the Reuters economists. After 0.2 per cent grows in March.

Production in the dominant services sector decreased by 0.4 percent, with the end of the tax exemption on home purchases that harm real estate agents and law firms. Cargo exports to the United States fell more than others, indicating that the activity was presented before the overwhelming American definitions that entered into force in early April.

British companies have also faced an increase in national insurance contributions since April, while families are wrestling with higher facilities bills.

The British economy has grown by 0.7 percent in the first three months of this year, but the Bank of England is expected to slow down to 0.1 percent in the second quarter.

Rob Morgan, chief investment analyst at the investment company Charles Stanley, said that the growth in the first quarter had helped him “exports impulses” before the definitions were imposed.

But he added: “With this height in the activity in the rear vision mirror, it is due to a more secular truth: growth in the United Kingdom is much lower than where the government wants to be.”

On Wednesday, Reeves presented a review of the government spending, which promised an increase for NHS but spending discounts in the real term for many Whitehall sections.

In response to the numbers of GDP on Thursday, Reeves said that “while these numbers are clearly disappointing, I am determined to fulfill this task.”

After issuing the data, the pound decreased, but it remained 0.2 percent a day at $ 1.357 against a widely weaker dollar.

The Monetary Policy Committee of England has reduced interest rates four times since August 2024, but three roads have been divided into a quarter of a point last month to 4.25 percent.

Traders this week raised their bets that the Bank of England will make other discounts in a quarter of this year, with the next step in September, after official data showed that the unemployment rate rose to the highest level in four years in the three months to April.