The UK economy shrank by 0.3 per cent in March, as ongoing strike action continued to take its toll. But the fall wasn’t enough to push the UK into recession territory, as the Office for National Statistics announced this morning that the economy grew by 0.1 per cent in the first three months of the year. This was thanks to stronger-than-expected growth in January (which was then followed by zero growth in February).
Do today’s updates paint an optimistic or pessimistic picture for the UK economy? While the risk of entering formal recession has been dodged once again, today’s news highlights just how stagnant the UK economy has become. We are years on from the peak of the Covid crisis now, yet quarterly GDP is still 0.5 per cent below its pre-pandemic levels (the last normal quarter being Q4 2019).
January’s growth figures are beginning to look like the exception to the rule.
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