UK economy stronger than thought in first quarter

AFP, London :
Britain’s economy grew more than expected in the first quarter, revised official data showed Friday, but remains at risk of recession as high inflation weighs on the country.

UK gross domestic product grew 0.3 percent in the January-March period, up from an initial estimate of 0.1-percent expansion, the Office for National Statistics said in a statement.

GDP grew by 0.2 percent in the second quarter which meant the economy slowed compared with the first three months of the year instead of picking up speed as initially thought.

Analysts said the data changed little for the UK outlook, as the nation grapples with high inflation and interest rates that risk tipping the economy into recession.

“The data leaves the economy still only 0.6 percent above its level a year ago,” noted Ruth Gregory, deputy chief UK economist at Capital Economics research group.

“It does not change the big picture that the economy has lagged behind all other G7 countries aside from Germany and France since the pandemic.”

It is now thought that the UK economy grew by 1.8 percent between the final quarter of 2019 — or before the start of the Covid pandemic — and the second quarter of this year, the ONS added Friday.