The British economy recorded a slight contraction of 0.1% in April, its first monthly decline since August of last year, amid indirect effects of the Iran war, which affected a number of sectors, especially the entertainment sector.
Official data stated that the cancellation of major sporting events, including races within the Formula 1 World Championship in the Gulf region, in addition to tennis and football tournaments, constituted a clear blow to entertainment-related activities in Britain, which contributed to the decline in economic performance during the month.
The preliminary report of the Office of National Statistics showed that this decline is one of the first indicators that growth in the United Kingdom has been affected by developments related to the US-Israeli war on Iran.
In the same context, the services sector’s output declined by 0.2%, affected by the decline in the performance of administrative and support services companies, in addition to the decline in arts and entertainment activity.
An official at the Statistics Office explained that several reports linked this decline to the cancellation of sporting events in the Middle East, which caused losses to British companies associated with organizing or covering them.
On the other hand, the manufacturing sector recorded an increase of 0.4% during April, supported by an increase in pharmaceutical production, a sector that usually witnesses noticeable fluctuations, which partly contributed to offsetting the losses of the services sector.
Despite the monthly decline, the data showed that the gross domestic product during the three months ending in April rose by 0.7% compared to the previous quarter, in line with economists’ expectations. (Arabic)
