Impact of Middle East conflict shows in 0.1% shrinking of economy

Richard Blackmore from The East Midlands Chamber

The East Midlands Chamber has said the war in the Middle East is likely to have influenced the first contraction in GDP in months and renewed its call for greater support to help the region’s businesses during tough trading conditions.

The latest estimated figure for April, published by the Office for National Statistics, follows growth of 0.3% in March.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “While a contraction in GDP was widely anticipated by economists, this is the first time since the start of the Middle East conflict that we’ve seen its impact on growth. With energy costs already having been forced sharply upwards and inflation expected to rise across the year, the level of challenge faced by firms has increased – that means business support must increase.

“In the coming days, we will publish the findings of our latest research from hundreds of businesses in the East Midlands – the Quarterly Economic Survey – in which we will see falling confidence among many firms in the region, stalled investment and business rates becoming a greater concern. Unemployment is currently far too high in the East Midlands at 5.5% and our latest data shows six out of ten businesses have struggled to find suitable staff.

“Business must be incentivised to invest to grow. It’s vital that policymakers step up support with wider energy relief packages, review business rates and invest in skills – asks outlined in our publication the Framework for Growth – the time to action those things is now.”