EFE.- The UK economy grew 0.1% in the first quarter of this year (January to March), the local Office for National Statistics (ONS) reported this Friday.
On a monthly basis, the UK’s gross domestic product (GDP) grew by 0.5% in January, remained flat in February (0%), while in March it fell by 0.3%.
The service sector grew 0.1% in the first three months of the year, while construction rose 0.7% in the quarter and the industrial sector increased 0.5%, according to the ONS, adding that there was no growth in household consumption.
ONS Director of Economic Statistics Darren Morgan said today that “despite the UK economy contracting in March, GDP grew slightly in the first quarter. The decline in March was driven by widespread declines across the services sector.
“Auto sales have been historically low, continuing a trend seen since the start of the pandemic,” Morgan said, adding that March had not been great for retail either.
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Inflation hit the British economy
This is the first calculation made by the ONS on GDP according to the first three months of 2023.
The UK has yet to enter a recession this year, despite the fact the Government glimpsed the possibility last year.
UK year-to-year inflation remains at a very high level, reaching 10.1%, which forced the Bank of England to order several rate hikes.
The entity yesterday announced an increase in tariffs from 4.25% to 4.5%, the highest level since 2008, to control inflation.
Britain’s issuing bank voted for the hike – its twelfth in a row – at the end of a meeting of its monetary policy committee, which aims to take steps to bring inflation to 2%.
Inflation remains high as food and beverage products continue to increase.
The Bank of England predicts inflation will fall significantly this year, reaching 2% by the end of 2024.
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