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
Palestinian Prisoners' Information Office: Four of his ribs were broken
Palestinian Prisoners' Information Office: Marwan al-Barghouti lost consciousness after a brutal assault by Israeli occupation soldiers
Al Mayadeen's correspondent: Israeli violations in the Gaza Strip have not stopped, and just a short while ago, fishermen came under fire from boats
Al Mayadeen's correspondent: Israeli occupation forces carry out a large explosion in the eastern neighborhood of the town of Mays al-Jabal in southern Lebanon.
Israeli media: Israeli political leadership decides to open Rafah crossing “as planned” and transfer aid to Gaza Strip.
Palestinian media: Three Palestinians were killed after being targeted by Israeli drone fire in the al-Shujaiya neighborhood east of Gaza City
Nicolas Maduro: The Palestinian cause is the most sacred cause for humanity, and we propose sending teams of builders, farmers, and doctors to Gaza to help the people
Al Mayadeen's correspondent in Lebanon: IOF infiltrate Khallet Wardeh towards the municipality in the town of Aita al-Shaab, south of Lebanon.
Leaders of the United States, Egypt, Qatar, and Turkey sign a ceasefire agreement in Gaza.
Trump arrives in Sharm el-Sheikh

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

Europe's Central Bank warns of global Gold market risks: FT

Bank of England warns Trump tariffs could spark corporate defaults

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

Iran strikes secret Israeli-US bunker under Tel Aviv high-rise

Tel Aviv high-rise struck by Iran hid Site 81, secret US-Israeli base

  • Politics
  • 14 Oct 2025
Palestinian journalist Saleh al-Jaafarawi in an undated image in Gaza, occupied Palestine (Social media)

Gaza Palestinian journalist Saleh al-Jafarawi killed by collaborators

  • Politics
  • 12 Oct 2025
drop site

New report details extensive Israeli arson in Gaza after ceasefire

  • Politics
  • 13 Oct 2025
Illustration of fists breaking shackles, representing the liberation of Palestinian detainees from Israeli prisons. (Illustrated by: AL Mayadeen English/Batoul Chamas)

4 prominent Palestinian detainees to be freed: Who are they?

  • Palestine
  • 13 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Members of the media wait for Palestinian prisoners and injured at the Rafah border crossing in Egypt, Saturday, Feb. 1, 2025 (AP)
Politics

Rafah crossing to reopen for travelers from Gaza: Reuters

US President Donald Trump speaks during an event in the Oval Office at the White House, Wednesday, October 15, 2025, in Washington (AP)
Politics

'Israel' may resume Gaza war if Hamas breaches ceasefire, Trump says

Mourners attend the funeral of slain captive Captain Daniel Peretz at Mt. Herzl military cemetery in occupied al-Quds, Wednesday, October 15, 2025 (AP)
Politics

Al-Qassam Brigades hand over all living Israeli captives

Armored vehicles drive through a street during a government-organized march in support of President Nicolas Maduro in Caracas, Venezuela, Tuesday, Sept. 23, 2025 (AP)
Politics

US approves covert CIA action in Venezuela: Reports

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