The Office for National Statistics (ONS) said the U.K. economy grew slightly in the second quarter but is expected to contract in coming quarters as the cost-of-living crisis and rising interest rates hurt consumers and the business sector.
According to the report, the UK’s gross domestic product (GDP) grew by 0.2% in the second quarter, compared with 0.7% in the first quarter.
According to the ONS’s revised estimates, the UK economy contracted by 11% in 2020 under pressure from the coronavirus pandemic, while the UK economy grew by 7.5% in 2021.
Economists expect the UK economy to struggle in the coming quarters as the stimulus provided by the government’s plans to cut energy prices and reduce taxes is offset by a sharp rise in borrowing costs.