UK Economy Shrinks 0.1% in May
Economists polled by Reuters had mostly forecast that gross domestic product would rise by 0.1% from April's level.
Britain's economy expanded rapidly in the first quarter of 2025, outstripping growth in other countries in the Group of Seven advanced economies. In May the Bank of England revised up its full-year growth forecast to 1%.
However, much of the growth in early 2025 was likely to have been linked to the expiry of a tax break for some home purchases in April which boosted the sector before the deadline, and a rush by manufacturers to beat higher US import tariffs.
The BoE has said it thinks the economy grew by about 0.25% in the second quarter of 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Arabiya
2 hours ago
- Al Arabiya
Taiwan plans to raise defense budget to more than three percent of GDP: Premier
Taiwan's government plans to raise its 2026 defense budget to more than three percent of GDP, Premier Cho Jung-tai said Thursday, as the island faces US pressure to invest more in its own protection. Cho said the move was 'another concrete demonstration to the world and the people of Taiwan of our resolve and ability to safeguard national sovereignty and security, the stability and security of the Indo-Pacific region, and our shared responsibility with the world.' The cabinet has allocated NT$949.5 billion (US$31.1 billion), equal to 3.23 percent of GDP, for defense spending next year. Cho noted that the total was calculated using NATO standards and included the coast guard. The proposal still needs approval from Taiwan's opposition-controlled parliament. The Kuomintang party, backed by the Taiwan People's Party, cut the government's 2025 budget and froze portions of defense spending. Taiwan has steadily boosted investment in weapons and military equipment over the past decade as China steps up pressure on the self-governed island, which Beijing claims as its territory.
Al Arabiya
3 hours ago
- Al Arabiya
Meta freezes AI hiring: Report
Meta Platforms has paused hiring in its artificial intelligence division after bringing on more than 50 researchers and engineers, the Wall Street Journal reported on Wednesday. 'All that's happening here is some basic organizational planning: creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises,' a spokesperson for Meta said in an emailed statement to Reuters.
Arab News
7 hours ago
- Arab News
Pakistan, China, Afghanistan vow joint fight against militancy, to extend CPEC to Kabul
ISLAMABAD: Islamabad, Beijing and Kabul have pledged to strengthen joint efforts against 'terrorism,' deepen cooperation in several sectors and extend a multi-billion-dollar energy and infrastructure project to Afghanistan, the Pakistani foreign office said on Wednesday following talks between the three sides in Kabul. The trilateral dialogue between China, Pakistan and Afghanistan was institutionalized in 2017. It aims to promote political trust, counterterrorism coordination and economic integration between the three countries. The talks helped ease tensions between Islamabad and Kabul, who have been at odds with each other amid a surge in militant attacks in Pakistan. There has been a thaw in relations after both sides agreed to elevate diplomatic ties in May to the ambassadorial level. China brokered the deal in an informal meeting in Beijing to improve relations between the two neighbors, under which it was also agreed to extend the China-Pakistan Economic Corridor (CPEC) to Afghanistan. 'The Sixth Trilateral Foreign Ministers Dialogue was held on 20 August 2025 in Kabul,' Pakistan's foreign office spokesperson said in a statement issued after the meeting, which was attended by the foreign ministers of the three countries. 'The three sides committed to strengthen joint efforts against terrorism,' the statement said, adding that the dialogue focused on political, economic and security cooperation between the three. 'They [Pakistan, China & Afghanistan] also reaffirmed their commitment to deepening collaboration in trade, transit, regional development, health, education, culture, and combating drug trafficking as well as extension of CPEC to Afghanistan,' the spokesperson said. CPEC is a multi-billion-dollar project that aims to connect China and Pakistan through a network of roads, railways, and energy pipelines. Dar held a bilateral meeting with his Afghan counterpart, Mawlawi Amir Khan Muttaqi, on the sidelines of the dialogue. Both welcomed the recent elevation of diplomatic ties between the two countries from chargé d'affaires to the ambassadorial level, a separate statement from the foreign office said. 'Dar acknowledged the encouraging progress in political and commercial ties, while expressing progress in the security domain, especially in counterterrorism, continues to lag behind,' the foreign office said. Dar highlighted a recent surge in militant attacks inside Pakistan, saying the attacks were perpetrated by groups operating from Afghan soil. He urged Afghan authorities to take 'concrete and verifiable measures' against entities such as the Pakistani Taliban or Tehreek-e-Taliban Pakistan, and the separatist Balochistan Liberation Army (BLA)/Majeed Brigade. Islamabad alleges these militant groups, which carry out attacks against Pakistani law enforcers, operate from sanctuaries in Afghanistan. Kabul denies the accusations. 'The Afghan Acting Foreign Minister reaffirmed Afghanistan's commitment to ensuring its territory is not used by any terrorist group against Pakistan or other nations,' the statement added. 'VERY POSITIVE DEVELOPMENT' Foreign affairs experts said the trilateral dialogue in Kabul was a 'positive development' that could help address Pakistan and China's shared concerns over 'terrorism.' 'This is a very positive development as Pakistan, China, and Afghanistan sat together and agreed to work jointly to rid the region of terrorist elements,' Naghmana Hashmi, Pakistan's former ambassador to China, told Arab News. She said the commitment expressed by the three neighboring countries to extend CPEC to Afghanistan was also an encouraging sign that would help the project achieve its true potential. 'It is a natural extension, since without peace in Afghanistan and smooth transit routes through its territory, CPEC cannot fully deliver for Pakistan, which needs access to Central Asian states and beyond,' she added. Former Pakistani diplomat Asif Durrani said the outcome of the meeting would become evident in the coming weeks, depending on whether cross-border 'terrorism' incidents take place or not. 'It is an ongoing process and some improvement has taken place, so we remain cautiously optimistic and keep our fingers crossed,' he said. Durrani said growing engagements at the leadership level were encouraging for both Pakistan and Afghanistan. 'It is important that both countries keep talking, as seen in the case of Pakistan and India, where dialogue stopped and unresolved issues created a visible regional impact,' he added. The trilateral talks took place as Pakistan presses ahead with a deportation drive against 'illegal immigrants,' mostly Afghans, which it launched in 2023 citing security fears and illegal migration. The process has continued in phases, with Islamabad now planning to expel documented Afghan refugees after Sept. 1, having refused to extend their stay permits.
