UK economy stronger than estimates in 1st quarter: data

Britain's economy grew more than expected in the first quarter, revised official data showed Friday, but remains at risk of recession as high inflation weighs on the country.

UK gross domestic product grew 0.3% in the January-March period, up from an initial estimate of 0.1-percent expansion, the Office for National Statistics said in a statement. GDP grew by 0.2 % in the second quarter which meant the economy slowed compared with the first three months of the year instead of picking up speed as initially thought.

Analysts said the data changed little for the UK outlook, as the nation grapples with high inflation and interest rates that risk tipping the economy into recession.


"The data leaves the economy still only 0.6 % above its level a year ago," noted Ruth Gregory, deputy chief UK economist at Capital Economics research group.

"It does not change the big picture that the economy has lagged behind all other G7 countries aside from Germany and France since the pandemic."

It is now thought that the UK economy grew by 1.8 % between the final quarter of 2019 -- or before the start of the Covid pandemic -- and the second quarter of this year, the ONS added Friday. It previously said the UK economy had shrunk slightly over the period.

The revised reading puts the country's economy ahead of Germany, which had growth of only 0.2 percent between the eve of the pandemic and second quarter of this year. However, UK growth lags the 6.1% output in the United States and Japan's 3.0% expansion in that time, Friday's release showed.