Fuel price rises and GDP falls

UK GDP fell by 0.3 per cent in April 2022 on the back of rising energy prices. This is according to data released by the Office for National Statistics on Monday.

The figure was worse than most economists predicted the British economy to grow by 0.1 per cent in April. The country's Gross Domestic Product fell by the same 0.1 per cent in March, compared with no growth in February. Every major sector of the kingdom's economy contributed to the April result, according to the statistics office.

"The manufacturing sector suffered, with many companies telling us they were adversely affected by rising fuel and energy prices," said the director of economic statistics.

Moreover, the British pound is falling 0.4 per cent against the dollar on Monday amid the release of these statistics. At the moment £1 is $1.236.

Also, the London Stock Exchange Index is down 0.98 per cent at the opening of trading on Monday. Oil and mining shares are among the leaders of the fall.

It is worth noting that the Confederation of British Industry has revised down its national GDP growth forecast from 5.1 per cent to 3.7 per cent in 2022 and from 3 per cent to just 1 per cent in 2023 because of the current situation.