EFE.- Britain’s economy grew by 0.1% in the first quarter of the year (from January to March), the local office for national statistics reported on Friday.
In monthly terms, UK GDP grew by 0.5% in January, held steady in February (0%), while in March it fell by 0.3%.
The services sector grew by 0.1% in the first three months of the year, while the construction sector advanced by 0.7% in the quarter, and the manufacturing sector increased by 0.5%, the National Bureau of Statistics noted, adding that there was no growth in household consumption.
ONS Director of Economic Statistics Darren Morgan said today that “Although the UK economy contracted in March, GDP grew slightly in the first quarter. The decline in March was driven by broad-based declines in the services sector.
“Auto sales have historically been low, and have continued the trend since the beginning of the pandemic,” Morgan said, adding that March wasn’t good for retail either.
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Inflation hits the British economy
This was the first calculation made by the Office for National Statistics of the corresponding gross domestic product for the first three months of 2023.
The UK did not enter recession this year, despite the fact that the government hinted at this possibility last year.
UK inflation year on year remains at very high levels, standing at 10.1%, which has forced the Bank of England to order several interest rate increases.
Yesterday, the entity announced an increase in interest rates from 4.25% to 4.5%, the highest level since 2008, in order to control inflation.
The Bank of English Issue decided to increase – the twelfth in a row – at the end of the meeting of the Monetary Policy Committee, which aims to take measures to reduce inflation to 2%.
Inflation remains high due to the continuous increase in food and beverage products.
The Bank of England expects inflation to drop significantly this year, reaching 2% by the end of 2024.
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