British economy edges back to growth

The British economy edged back to growth in the first three months of this year in a partial recovery from the post-September…

The British economy edged back to growth in the first three months of this year in a partial recovery from the post-September 11th slowdown.

The British Office for National Statistics says gross domestic product grew by 0.1 per cent in the first quarter of 2002 compared with the previous quarter.

In the final three months of 2001, Britain's economy recorded zero growth after being hit by the manufacturing recession and a lacklustre service sector following the terrorist attacks.

The economy had been expected to return to growth in the first quarter of this year, thanks to a pick-up in the global economy and firm domestic demand.

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But the 0.1 per cent increase is weaker than the 0.4 per cent rise which was forecast by economists. The year-on-year growth figure of 1 per cent was also weaker than the 1.3 per cent predicted by economists.

Britain's economic growth for 2001 as a whole was 2.2 per cent, the strongest in the Group of Seven countries.

Chancellor of the Exchequer Mr Gordon Brown has predicted growth of between 2 and 2.5 per cent for this year as a whole. That is more optimistic than a number of independent economists' forecasts.