Skip to content 
Search

Latest Stories

Rishi Sunak speaks on April GDP statistics, says world seeing a slowing growth

The chancellor’s response came after the British economy shrank unexpectedly in April which added to the fears of a serious slowdown.

Rishi Sunak speaks on April GDP statistics, says world seeing a slowing growth

NATIONS around the world are witnessing a sluggish growth and the UK is no exception. This is what Rishi Sunak, the chancellor to the exchequer, said in response to the official revelation that the British economy shrank unexpectedly in April which added to the fears of an acute slowdown just days ahead of the Bank of England unveiling its latest interest rate response to the rise in inflation.

The gross domestic product (GDP) contracted by 0.3 per cent after sliding by 0.1 per cent in March, marking the first back-to-back declines since April and March 2020 when the coronavirus pandemic had started wreaking havoc, Reuters reported.


On an average, economists who were polled by the news agency had expected the GDP to grow by 0.1 per cent in April from March. The GDP would have gone up by 0.1 per cent, excluding the consequence of a fall in the government’s coronavirus test-and-trace and vaccination drive, the Office for National Statistics (ONS) said, Reuters added. But it was the first time since January 2021 that the main economic sectors received a setback.

Over the three months extending up to April, the GDP went up by 0.2 per cent, which was weaker than the Reuters’ poll prediction of 0.4 per cent, and slowing steadily from the growth of 0.8 per cent in three months up to March.

'We are fully focussed on growing the economy'

“Countries around the world are seeing slowing growth, and the UK is not immune from these challenges,” Sunak said.

“I want to reassure people, we’re fully focussed on growing the economy to address the cost of living in the longer term, while supporting families and businesses with the immediate pressures they’re facing.

“We have a plan to turbocharge productivity through investment in capital, people and ideas, so everyone across the country can benefit from a strong, healthy economy,” he added.

In February, Sunak laid out his long-term vision for a lower tax, higher growth, higher productivity economy centred around a new culture of enterprise at the annual Mais Lecture at the Bayes Business School.

Last week, the Organisation for Economic Co-operation and Development said the British economy would witness no growth next year -- the weakest forecast for 2023 of any country in G20 with the exception of Russia which is facing sanctions.

On Monday, the Confederation of British Industry issued a warning that the UK faces a risk of stagnation and recession, Reuters added.

More For You

UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Bond yields ease following Starmer’s support for Reeves

THE COST of UK government borrowing fell on Thursday, partially reversing the rise seen after Chancellor Rachel Reeves became emotional during Prime Minister’s Questions.

The yield on 10-year government bonds dropped to 4.55 per cent, down from 4.61 per cent the previous day. The pound also recovered slightly to $1.3668 (around £1.00), though it did not regain all its earlier losses.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Indian exporters watch closely as Trump says trade deal with India likely

THE US could reach a trade deal with India that would help American companies compete more easily in the Indian market and reduce tariff rates, President Donald Trump said on Tuesday. However, he cast doubt on a similar deal with Japan.

Speaking to reporters on Air Force One, Trump said he believed India was ready to lower trade barriers, potentially paving the way for an agreement that would avoid the 26 per cent tariff rate he had announced on April 2 and paused until July 9.

Keep ReadingShow less
Kolhapuri sandal sales surge in India post Prada controversy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Kolhapuri sandal sales surge in India post Prada controversy

INDIAN footwear sellers and artisans are tapping into nationalist pride stoked by the Prada 'sandal scandal' in a bid to boost sales of ethnic slippers with history dating back to the 12th century, raising hopes of reviving a struggling craft.

Sales are surging over the past week for the 'Kolhapuri' sandals that have garnered global attention after Prada sparked a controversy by showcasing similar designs in Milan, without initially crediting the footwear's origins.

Keep ReadingShow less
modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Key issues in India, US trade talks

TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.

Here are the key issues at play:

Keep ReadingShow less
Anil Agarwal

Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)

Getty Images

Anil Agarwal’s Vedanta Resources signs £438 million refinancing deal

VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.

The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.

Keep ReadingShow less