Written by Reem Abdel Hamid
Friday, May 12, 2023 01:28 PM
Britain’s economy witnessed weak growth in the first quarter of this year, and contracted unexpectedly during March, at a time when the UK economy was affected by widespread strikes.
According to the BBC, the economy grew by 0.1% between January and March, according to data from the Office for National Statistics.
These figures come a day after the Bank of England announced that it was more optimistic about Britain’s prospects, and that the economy would avoid recession. The bank also raised the interest rate by a quarter of a point, to 4.5%. This decision was part of the bank’s continued attempts to slow price increases.
Darren Morgan, director of economic statistics at the British National Statistics Office, said that throughout the first quarter of the year as a whole, the economy was driven by the growth of the information technology and construction sectors, against a partial decline in health, education and public administration as this sector was affected by strikes.
--The figures showed that while the economy grew slightly during the first three months of 2023, it contracted in March by 0.3%, as auto sales and the retail sector had a bad month.
Morgan told the BBC that car sales were relatively weak in March, while retail sales were hit by wet weather that kept people away from visiting the High Street.
British Chancellor of the Exchequer Jeremy Hunt welcomed the new news, saying it was good news, but noted that achieving the government’s growth target would require a continued focus on competitive taxation, labor supply and productivity.
Meanwhile, British lawmakers launched an inquiry on Friday into the integrity of the country’s food supply baskets, seeking to understand why households are facing the highest levels of food price hikes since the 1970s.
According to Reuters, the House of Commons Environment, Food and Rural Affairs Committee said it would look at how profits and risks were shared from “farm to fork” and the level of regulation. It will also examine the impact of external factors on supply chains, such as imported food and global commodity prices.
