LONDON, United Kingdom, May 12 – Britain’s economy grew 0.1 percent in the first quarter after narrowly avoiding recession last year, official data revealed Friday, as output continues to be hit by high inflation and strikes.
After gross domestic product advanced 0.5 percent in January, output flattened in February and slid 0.3 percent in March, the Office for National Statistics said in a statement.
“The fall in March was driven by widespread decreases across the services sector,” noted ONS director of economic statistics, Darren Morgan.
“Despite the launch of new number plates, cars sales were low by historic standards — continuing the trend seen since the start of the pandemic — with warehousing, distribution and retail also having a poor month,” he added.
The data comes one day after the Bank of England forecast that the UK economy would avoid recession this year despite the country’s annual inflation stuck above 10 percent.
With consumer prices continuing to rise at a fast pace, the BoE on Thursday hiked its key interest rate by a further quarter-point to 4.5 percent.
It was the central bank’s 12th increase in a row, putting the rate at the highest level since the global financial crisis in 2008.
Elevated inflation is eroding the value of workers’ wages, causing mass strikes across Britain, the latest being stoppages on the railway network Friday.
