Britain’s economy contracted in April as the US-Israeli war on Iran hit growth, official data showed Friday, dealing a setback to Prime Minister Keir Starmer as he grapples with a political crisis.
Gross domestic product fell 0.1 per cent in April following growth of 0.3 per cent in March, the Office for National Statistics said in a statement.
The reading matched analysts’ expectations and followed a stronger-than-expected first-quarter performance.
Surging energy prices triggered by the war, which began with US-Israeli strikes on Iran on February 28, have reignited inflationary pressures and threatened to derail growth.
“Before the conflict in the Middle East, growth was higher than expected, and inflation was falling,” finance minister Rachel Reeves said in response to the figures.
“This is not a war we wanted or joined, but one that will have an impact at home,” she said.
The weak economic showing dealt a fresh blow to Starmer, who is facing calls to step down.
Britain’s defence and armed forces ministers quit on Thursday in a row over military spending, further weakening Starmer’s authority just a week before a by-election that could prompt a bid to replace him.
