Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Tebboune: Achieving economic integration must not remain a dream.
Algerian Foreign Minister Ahmed Attaf delivers a speech on behalf of Algerian President Abdelmadjid Tebboune at the Fifth Arab Development, Economic, and Social Summit in Baghdad.
Mustafa: We reaffirm our commitment to work with our brothers and friends around the world for stability and an end to wars.
Palestinian Prime Minister Mohammad Mustafa: We stress the importance of reaching an agreement to implement the initiatives of the Development, Economic, and Social Summit.
Aboul Gheit: The global economy is going through a period of turbulence.
Aboul Gheit: Concrete solutions must be found for the issue of Arab food security in line with the strategy proposed at the Arab Summit in Baghdad.
Aboul Gheit: Arab national security is an integrated whole that cannot be achieved without food, social, cyber, and other forms of security.
Arab League Secretary-General Ahmed Aboul Gheit: We present a comprehensive Arab strategy for food security at the Arab Development Summit.
The closing statement of the Arab Summit: We reaffirm our absolute rejection of the displacement of the Palestinian people and call for the delivery of aid to the Gaza Strip.
The closing statement of the Arab Summit: The goal of the Arab Summit is to unify our efforts and achieve the interests of the peoples of our region.

UK economy shrinks unexpectedly, F&B exports down by 34%

  • By Al Mayadeen English
  • Source: Agencies
  • 14 Mar 2025 12:18
4 Min Read

The UK economy contracted by 0.1% in January, surprising economists and reflecting weaker manufacturing and construction output.

Listen
  • x
  • Britain's Chancellor of the Exchequer Rachel Reeves hosts a roundtable with the defence sector at RAF Waddington in Lincolnshire, England, on February 28, 2025. (Yui Mok/Pool via AP)
    Britain's Chancellor of the Exchequer Rachel Reeves hosts a roundtable with the defense sector at RAF Waddington in Lincolnshire, England, on February 28, 2025. (Pool via AP)

The UK economy shrank by 0.1% in January, a setback for UK Exchequer Chancellor Rachel Reeves ahead of the spring statement later this month.

In a surprise to City economists, who had predicted 0.1% growth, the Office for National Statistics data revealed on Friday that the services sector couldn’t compensate for a decline in the industrial sector, preventing growth from the previous month.

Manufacturing output fell by 1.1% in January 2025, reversing a 0.7% increase in December. Construction also struggled due to poor winter weather impacting housebuilders.

Yael Selfin, chief economist at KPMG UK, stated: “The UK economy starts the year on the back foot as global uncertainty casts a shadow on the outlook.”

In December, the economy grew by 0.4%, helping the final quarter of 2024 show a 0.1% rise and avoid two-quarters of zero growth.

The Bank of England’s monetary policy committee is expected to overlook the latest figures when it meets next week, with financial markets predicting interest rates will remain at 4.5%.

The National Institute of Economic and Social Research has forecast 0.4% growth for the first quarter of 2025, much higher than the Bank's estimate of only 0.1%.

UK food and drink exports to the EU down 34% since Brexit

Related News

Gold is being transported from the UK to the US amid fears of tariffs

UK economy continues tumbling, borrowing rate hits 2008-high

In a related context, a report released on Friday revealed that British food and drink exports to the EU have fallen by 34% since Brexit, with volumes dropping to 6.37 billion kg in 2024, according to the Food and Drink Federation (FDF). Popular items like whisky, chocolate, and cheese remain in demand, but the overall decline is attributed to post-Brexit trading barriers.

While the UK struggles with this slump, other European countries such as the Netherlands, Germany, and Italy have increased their export volumes. The FDF points to new bureaucratic hurdles as the cause.

Meanwhile, food and drink imports to the UK reached a record £63.1bn in 2024, with EU imports rising 3.3% despite new border checks.

The EU remains the UK’s largest trading partner, accounting for nearly two-thirds of exports and three-quarters of imports, valued at nearly £45bn.

The FDF stated that food and drink imports to the UK face fewer checks than UK exports of similar products. It noted that small and medium-sized UK exporters are struggling the most to meet the EU's "more stringent" import regulations.

The FDF is urging the government to collaborate with the food and drink industry to adopt a strategic approach to EU trade relations and address "unnecessary barriers" hindering trade with Europe.

“These latest figures show the stark reality for the UK’s 12,500 food and drink businesses who are struggling to deal with the complexity and bureaucracy that comes when trading with Europe,” said Balwinder Dhoot, the director of industry growth and sustainability at the FDF, adding, “Government must prioritize working with the EU, and our industry, to remove as many of these barriers as possible.”

Global food export volumes grew by nearly 6% in 2024, as the UK began benefiting from free trade agreements, with UK exports to Australia rising by 9% to £429.5 mln in the first full year after the UK-Australia trade deal.

While Ireland and France remain the UK’s largest export markets, the US has moved into third place, driven by strong demand for British products like tea and biscuits.

The FDF hopes that a future UK-US trade deal will shield the food and drink sector from potential tariffs, especially amid recent US threats of a 200% tariff on wine and champagne from EU countries.

Read next: UK owes what it produces: GDP ties with debt in a first since 1960s

  • Bank of England
  • London
  • Rachel Reeves
  • United Kingdom

Most Read

Two F-35 jets arrive at it's new operational base Wednesday, Sept. 2, 2015, at Hill Air Force Base, in northern Utah. (AP)

F-35 near-misses over Yemen signal new risks for 'Israel': Forbes

  • Politics
  • 14 May 2025
Palestinians pray over bodies of people killed in the Israeli bombardment who were brought from the Shifa hospital before burying them in a mass grave in the town of Khan Younis, southern Gaza Strip, Wednesday, Nov. 22, 2023. (AP )

Gaza casualty figures mask a much bigger horror, new study shows

  • Politics
  • 11 May 2025
Gaza and the logic of necropolitics: Sovereignty measured by killing

Gaza and the logic of necropolitics: Sovereignty measured by killing

  • Politics
  • 15 May 2025
Abu Obaida

Abu Obeida posts shortly after Israeli reports about his assassination

  • Palestine
  • 15 May 2025

Coverage

All
Gaza prevails against genocide

Read Next

All
A Microsoft sign and logo are pictured at the company's headquarters, Friday, April 4, 2025, in Redmond, Wash. (AP)
Technology

Microsoft admits supplying AI to 'Israel' amid Gaza carnage

Israeli occupation’s tanks parked in a staging area near the border with Gaza, Friday, May 16, 2025. (AP)
Politics

'Israel' launches multi-axis assault in Gaza under 'Gideon’s Chariots'

People stand at the train ticket counter of NJ Transit at Penn Station, amid a strike by New Jersey Transit train engineers, in New York, Friday, May 16, 2025. (AP)
Economy

Commuters stranded amid first New Jersey railway strike in 40 years

Trump's tax bill stalls as Republican opposition demands deeper cuts
US & Canada

Trump's tax bill stalls as Republican opposition demands deeper cuts

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS