UK economy shrinks, but less than expected | NOW

The British economy has contracted for the first time since the start of the corona crisis. In the second quarter of this year, the economy shrank 0.1 percent compared to the first three months.

The contraction was less than economists had expected: they previously predicted that the United Kingdom economy would shrink by 0.3 percent in the period April to June.

British households in particular kept a tight rein, but the end of the corona crisis also had an impact on the economy. In the second quarter of this year, less money was spent on corona tests and vaccinations.

Hairdressers, restaurants and festivals did well. This is mainly because they have no longer been bothered by lockdowns and corona restrictions in recent months.

The outlook for the UK economy for the third quarter of this year is slightly more rosy: economists expect the economy to recover somewhat after the summer holidays.

However, the worries about the economy are not over yet. Last week, the Bank of England warned that it expects the UK economy to return to a severe recession in the fourth quarter of this year.

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