London, Thanasis Gavos
It shrank by 0.1% the UK’s GDP the month Marchaccording to latest data from the Office for National Statistics.
Overall, in the first quarter of the year, the country recorded a growth rate of 0.8%, down from 1.3% in the previous quarter.
The negative performance is attributed to the reduction of demand and consumption in a number of products, which in turn is due to the large increase in inflation and the squeezing of disposable household income, mainly due to rising energy costs.
Inflation was at 7% in March, with analysts anticipating that data for April would raise that price to around 8.5%, a 40-year high. The Bank of England has forecast inflation to rise to just over 10% in the autumn.
THE British Treasury Secretary Risi Sunak commented that the strong economic recovery after the pandemic is now being disrupted by the “Putin barbaric invasion” of Ukraine and other global challenges.
“Growth is the best way to help families in the long run, so along with alleviating the immediate pressure on households and businesses, we are investing in capital, people and ideas to boost the standard of living in the future.”added Mr. Sunak.
THE Prime Minister Boris Johnson said from Stoke-on-Trent, where the cabinet met today, that the recovery from the pandemic was based on strong employment. Therefore, he added, the government must now focus on a strong recovery through high employment. “I’m encouraged by the growth data I saw this morning. Jobs, jobs, jobs are the answer »added the British Prime Minister.
Last week the Bank of England warned of a possible recession in the near future.