British economy grows 0.3 per cent in first quarter: Official

LONDON: Britain's economy expanded by 0.3 per cent in the first quarter of 2010 from output in the previous three months, unchanged from the previous estimate, official data showed on Monday

One analyst commented that the data signalled that the recovery would have difficulty in absorbing tough budget action to correct national deficits and reduce debt.

The Office for National Statistics (ONS) said in a statement that it maintained its estimate for gross domestic product (GDP) growth for the three months to the end of March, in line with market expectations.

The third and final reading of first-quarter GDP had been due for publication in late June, but was delayed by two weeks owing to possible errors.

"The first quarter's delayed national accounts show that the recovery is still estimated to have got off to a fairly slow start at the beginning of the year, with the quarterly rise in GDP left unrevised at 0.3 per cent," said Capital Economics analyst Vicky Redwood.

She added: "Overall ... we still doubt that the economy is in a good position to withstand the fiscal squeeze."

Britain's fiscal watchdog, the Office for Budget Responsibility, forecast last month that GDP would grow by 1.2 per cent this year and 2.3 per cent in 2011, following the coalition government's deficit-slashing emergency budget.

Last week, meanwhile, the International Monetary Fund cut its growth forecasts for Britain.

The IMF predicted that GDP will grow by 1.2 per cent this year, followed by 2.1 per cent in 2011. The new forecasts compared with the previous estimates for expansion of 1.3 per cent and 2.5 per cent respectively.