The British economy shrank in the first month of 2025 compared with December, driven by a decline in production. View on euronews

The U.K.'s economy unexpectedly shrank by 0.1% month-on-month in January, official figures showed on Friday. Britain's Office for National Statistics said the fall was mainly due to a contraction in the production sector. Economists polled by Reuters had expected the country's GDP to grow by 0.1%.

Sterling lost some ground versus the dollar on Friday after data painted a grim picture of the British economy, and it softened against the euro as prospects of a German debt deal lifted the shared European currency.