As reported by the Office for National Statistics (ONS), the UK’s Gross Domestic Product (GDP) experienced growth of 0.1% in the first quarter of 2023, in line with economists’ expectations. This follows a similar increase recorded in the last three months of 2022. However, at the end of the quarter, GDP slipped back with a 0.3% decline in the month of March after holding steady in February and showing a 0.5% increase in January.
“First quarter growth was mainly driven by the IT and construction sectors, although the economy experienced a slowdown due to strikes in the healthcare, education and utilities sectors.” Darren Morgan, director of economic statistics at the ONS, stated via Twitter.
Despite persistent inflation around 10%, which has negatively affected the UK economy, the latest forecasts, including those of the Bank of England (BoE) published on Thursday, are more optimistic. The BoE estimates GDP growth of 0.25% in 2023 and 0.75% in 2024.
These forecasts contrast with the previous scenario, in which a recession in the country was feared for this year after narrowly avoiding one at the close of 2022. Although economic challenges remain, the current outlook shows a greater degree of optimism regarding the future performance of the UK economy.
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