Aug 9, 2019 - World

U.K. economy shrinks for the first time since 2012

Orion Rummler

In this image, Boris Johnson sits in a chair with the British flag behind him. — U.K. Prime Minister Boris Johnson. Photo: Dominic Lipinski/Pool/AFP/Getty Images

The U.K.'s economy shrank by 0.2% in 2019's second quarter, its first contraction since 2012, the country's Office of National Statistics reported on Friday.

What's happening: Fears of a no-deal Brexit, which could damage the U.K. economy as it drops out of the European Union onto World Trade Organization rules, on October 31 are dampening the country's growth.

Meanwhile, those same fears are causing the pound to lose value versus the dollar, plunging to its lowest level in more than two years last month, per Axios' Dion Rabouin.

The other side: "Friday’s figures showed that British consumers remain upbeat as unemployment is at 44-year lows and wages are rising solidly and outpacing inflation," the AP reports.

Go deeper: Everything you need to know about Brexit

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U.K. economy shrinks for the first time since 2012

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