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
Araghchi to Grossi: These parties will bear responsibility for the consequences of their actions
Araghchi to Grossi: Iran will respond to any unlawful action by European countries or parties attempting to turn the Agency into a tool for achieving their objectives
Araghchi to Grossi: We urge the Agency to warn against the consequences of any political move against Iran
Araghchi to Grossi: We call on the Agency to highlight Iran’s full cooperation during the upcoming Board of Governors meeting next week
Araghchi to Grossi: We demand that the Agency reflect the facts in a manner that prevents certain parties from exploiting it to advance their political agendas
Iranian Foreign Minister Abbas Araghchi holds a phone call with IAEA Director General Rafael Grossi
Trump envoy Witkoff has sent 'detailed and acceptable proposal' to Iran for nuclear deal; it's in their best interest to accept it: White House Press Secretary Leavitt
Hamas official says Witkoff's position toward group was 'unfair' and shows 'complete bias' to 'Israel'
Hamas official says it has considered Witkoff's proposal acceptable for negotiations, says 'Israel's' response was incompatible with what the group agreed on
Hamas official says group has not rejected Wikoff's proposal for Gaza ceasefire

UK likely heading towards a year-long recession

  • By Al Mayadeen English
  • Source: Agencies
  • 12 Aug 2022 12:52
  • 1 Shares
3 Min Read

After the Office for National Statistics (ONS) announced that the data showed UK GDP had dropped by 0.1% between April and June, the Bank of England stated that the UK is heading towards a recession.

  • x
  • Bank of England
    Bank of England (The Standard)

Official data showed Friday that the UK GPD shrank in the second quarter, highlighting a possible recession in the upcoming quarter.

The Office for National Statistics (ONS) said that, according to the data, the GDP in Britain dropped by 0.1% between April and June. In the previous quarter, the UK GDP witnessed a rise of 0.8%. It is worth noting that the ONS also stated that in June, the UK economy fell by 0.6%. A recession is marked by a GDP fall in two consecutive quarters. 

By the end of 2022, the Bank of England (BoE) predicts to enter a long recession for at least a year's time. Currently, Britons are faced with staggeringly high costs of living as they overcome the worst inflation they have witnessed in decades. 

"With May's growth revised down a little and June showing a notable fall, overall, the economy shrank slightly in the second quarter," ONS director of economic statistics Darren Morgan said. "Health was the biggest reason the economy contracted as both the [Covid] test and trace and vaccine programs were wound down, while many retailers also had a tough quarter."

Morgan further argued that the recession was "partially offset" as a result of "growth in hotels, bars, hairdressers and outdoor events across the quarter, partly as a result of people celebrating the Platinum Jubilee" that marked 70 years of Queen Elizabeth II's rule.

A new PM in the UK

Related News

UK Tories elect Badenoch as new leader

Sunak government freed over 10,000 prisoners 70 days early

The economic situation across the UK is being worsened by the political instability that plagues the country. After ONS data was made public, Finance Minister Nadhim Zahawi announced that he was "determined to work with the Bank of England to get inflation under control and grow the economy".

However, presiding PM Boris Johnson's office made a clear statement that he would not be involved in mandating "major fiscal interventions" prior to his stepping down next month. 

Johnson was absent from the country when the BoE warned of an imminent recession last week. Johnson had taken his wide on a belated honeymoon celebration to Slovenia at a time when most Britons are struggling to make ends meet.

Zahawi, too, was absent during that time period in which the central bank hiked interest rates by the biggest margin within the last few decades in hopes of containing inflation.

Johnson is set to leave office on September 6 as either Liz Truss or Rishi Sumak, both conservatives, are set to succeed him. However, the two candidates have also clashed as to how to address the ongoing crisis. 

On one hand, Truss intends to implement an emergency budget to slash taxes and reassess the independent BoE's mandate to contain inflation. 

Sunak, on the other hand, said that tax cuts backed by increased borrowing would drive the bank to raise interest rates even further. He emphasized the need of maintaining fiscal restraint but first, contain price pressures.

Read more: The UK economy is crushed - Analysts

  • Rishi Sunak
  • inflation
  • Liz Truss
  • UK
  • United Kingdom

Most Read

US judges quietly consider private security amid Trump tensions

US judges quietly consider private security amid Trump pressures

  • US & Canada
  • 25 May 2025
President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
MIT bans class president who gave pro-Palestine speech
US & Canada

MIT bans class president over pro-Palestine speech

Arab ministers condemn Israel 'ban' on planned West Bank visit
Politics

Arab ministers condemn Israeli ban on planned West Bank visit

Major General Hu Gangfeng, Vice President, National Defense University, People's Liberation Army, China, leaves after a panel discussion during the 22nd Shangri-La Dialogue summit in Singapore, Saturday, May 31, 2025. (AP Photo/Anupam Nath)
Politics

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

US activists demand shutdown of Musk's 'dirty' supercomputer: Reports
Technology

US activists demand shutdown of Musk's 'dirty' supercomputer: NBC News

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