The United Kingdom’s Gross Domestic Product (GDP) grew by 0.1% in the first quarter, as forecast by analysts, after having registered the same increase in the last quarter of 2022, it was announced this Friday.
No meanwhile, according to a first estimate published today by the Office for National Statistics (ONS), or GDP fell at the end of the quarter, with a contraction of 0.3% only in March, after being declared in February and increased 0.5% in january.
Growth in the first quarter “was driven by the information technology and construction sectors,” but the economy contracted due to strikes over wages “in healthcare, education and public administration,” said Darren Morgan, chief statistics officer. economics of the ONS, on Twitter.
In March, the economy was affected by “a general drop in activity in the service sector” but also by lower car sales and a difficult month for the warehousing, distribution and retail sectors, Morgan added.
“A weaker economy in March underscores its fragility despite falling wholesale energy prices, improving supply chains and consumer confidence,” said Yael Selfin, economist at KPMG.
The British economy, weighed down by inflation that remains above 10%, was until recently expected to enter recession this year, narrowly escaping it at the end of 2022.
But the latest forecasts, including those published on Thursday by the Bank of England, are more optimistic.
On Thursday, the Bank of England (BoE) raised rates for the 12th time in a row, to 4.5%, the highest level since October 2008 and the financial crisis, as the UK economy is holding up better than expected. .
It is now forecast for 0.25% growth in 2023 and no quarterly contraction this year.
“While a recession is unlikely, vulnerabilities from rising borrowing costs and the credit crunch are expected to dampen business and household activity this year, and business investment and consumer spending are expected to remain subdued in the short term,” he added. Selfin.
Source: TSF
