UK economy grows by 0.1% in first quarter of 2023

The ONS said Britain's economy remained 0.5% smaller than its size in the fourth quarter of 2019, shortly before the coronavirus pandemic.

In March, British GDP shrank by 0.3% from February. (File image)

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British gross domestic product grew by 0.1% in the first three months of 2023, figures from the Office for National Statistics showed on Friday.

Economists polled by Reuters had mostly forecast 0.1% quarter-on-quarter growth in the first three months of this year.

In March, British GDP shrank by 0.3% from February.

The Reuters poll of economists had pointed to no change in GDP in March.

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The ONS said Britain’s economy remained 0.5% smaller than its size in the fourth quarter of 2019, shortly before the coronavirus pandemic.

The Bank of England forecast on Thursday that Britain would grow by 0.25% in 2023 – a weak expansion but one which avoids a recession – having previously predicted a contraction of 0.5%.

Britain is struggling with an inflation rate which topped 10% in March – double the level in the United States and higher than the euro zone’s too – as well as a very tight labour market, a string of interest rate hikes and after-effects of Brexit.