Britain economy grew by 0.1% in the first Three months of 2023, the period it was expected to be a part of of A Long, But Unexpectedly Sharp Recession 0.3% drop in March confirmed how fragile to her recovery remains.
Economists polled by Reuters had mostly expected a 0.1 percent gain on the quarter growthbut they expected production to be flat in the final Month of the quarter.
“the fall in “March was driven by a broad-based decline in the services sector,” said Darren Morgan of the bureau. for National Statistics.
“Although at all of new plate number, car Sales were low by historical standards – continuing a trend seen since start of epidemic – with Warehousing, distribution and retail also Poor month.
The spread of industrial work also weighing on The economic activity in the quarterONS said.
Britain economy It remained 0.5% smaller than in the fourth quarter of 2019, shortly before the coronavirus pandemic hit – a recovery weaker than any other major rebound economy.
with the key services side of the economy It continues to slow down in the face of higher borrowing costs and rising Prices, still feel like We’re going the way of the lions,” said Tom Stephenson, a personal investment. director At Fidelity International.
With continued inflation in double Numbers, it feels depressing like we-run of Stagflation of the 1970s”.
production | in March was only 0.1% higher from in February 2020 last full The month before the pandemic.
Weaker economy in March confirms its fragility despite the fall in Wholesale energy prices, improved supply chain conditions, and consumer confidence that have also Recovered from multiyear, said Yael Selvin, an economist at KPMG.
While the recession may not have returned on the cardsresulting vulnerabilities higher Borrowing costs are likely to decline and credit tightening business This home activity year. “
the bank of England forecast on Thursday that Britain economy will grow 0.25% in 2023 as a whole – a weak expansion but an upgrade on his previous expectation of 0.5% shrinkage.
inflation in Britain rate topped 10% in He walks – double the level in United States and higher From the eurozone too – and it is also struggling with hard work marketseries of interest rate Elevations and aftereffects of Britain’s exit from the European Union.
finance minister Jeremy Hunt said after the data showed that need for the government To stay focused on Competitive taxation, labor supply and productivity.
