Britain's economy shrank in the second quarter, official data showed on Friday, as it heads towards recession.

UK gross domestic product dropped 0.1 percent in the April-June period after a rise of 0.8 percent in the first quarter, the Office for National Statistics said in a statement.

The Bank of England expects the economy to fall into recession this year, which would occur should GDP contract also in the third quarter.

"With May's growth revised down a little and June showing a notable fall, overall the economy shrank slightly in the second quarter," said ONS director of economic statistics Darren Morgan.

"Health was the biggest reason the economy contracted as both the [Covid] test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter."

The UK economy slumped 0.6 percent in June, the ONS added. (AFP)