The gross domestic product of the United Kingdom fell 0.4% in April, another sign the world’s economies have become sluggish. The drop also probably was driven by trouble created by Brexit.
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In an announcement, the Office of National Statistics said:
Monthly GDP growth was negative 0.4% in April 2019, as the production sector and manufacturing sub-sector contracted.
The International Monetary Fund has warned that growth in most economies will slow and has revised down its forecasts for most major economies.
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Growth over the last three months was also weak. The United Kingdom uses the three-month number because it is more reliable:
The rolling three-month growth of 0.3% in April 2019 may appear inconsistent with the month-on-month growths of negative 0.1% in March and negative 0.4% in April.
And:
Despite the declines in March and April, the average output of the current three months is still above that of the previous three months.
That is cold comfort.
The numbers are likely to get worse. The outcome of Brexit on the U.K. economy has yet to be decided. However, trade friction between the United States and China is expected to have ripple effects across the global economy. The United Kingdom is a trade partner of some size with both nations. In particular, the United States is one of its largest trading partners.
If the United Kingdom falls into recession, it is more likely that a tottering EU economy will as well. The United Kingdom remains a key to the region’s economy, even as it splits from its former partners.
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