RBC: UK GDP Growth Expected to Slow in Coming Quarters

On June 12, Cathal Kennedy, an analyst at the Royal Bank of Canada, pointed out in a report that the UK economy is expected to further slow down in the coming quarters due to the impact of the Middle East conflict. The latest data shows that the country's monthly GDP shrank by 0.1% in April, compared to a growth of 0.3% in March. Kennedy stated that the high costs of goods and services resulting from the Middle East conflict are expected to squeeze real household incomes and lead to a decrease in consumption. 'For the Bank of England's policy, what is truly critical is the extent of the economic slowdown in the future and how much inflationary pressure from the conflict the country can absorb.'