Although lower than expected, the expansion between January and March is expected to mark a high point for this year, with consumer spending under the biggest pressure for decades.
Last week, the Bank of England forecast inflation to rise above 10% in the last quarter of the year against the 2% target, up from 7% in March.
“Our recovery has been hampered by the brutal invasion of Ukraine (Russian President Vladimir) Putin and other global challenges, but we will continue to help the people as much as we can,” Finance Minister Rishi Sunak said after the data was released on Thursday.
The United Kingdom, unlike its European neighbors, has limited direct economic relations with Russia, but has been hit hard by rising energy prices in Europe.
On a monthly basis, GDP is now 1.2% higher than its pre-February 2020 Govt level. However, much of the recovery reflects high health care costs – an increase of 11% since the onset of the epidemic – while consumer services are still 7% lower. Their pre-coveted position.
In March alone, sales of cars and motor vehicles fell 15.1%, leading to a 0.2% drop in overall service output.
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