UK: GDP Grows 0.8% in Q1, Affecting Preparation for New Showdown With EU Over Brexit

UK: GDP Grows 0.8% in Q1, Affecting Preparation for New Showdown With EU Over Brexit

The British economy grew less than expected in the first quarter, as the winter wave of Omicron-variant COVID-19, a skills shortage, and an intensifying cost-of-living crisis all weighed on output.

Gross domestic product grew by only 0.8% in seasonally-adjusted terms from the fourth quarter, the Office for National Statistics said on Thursday, with preliminary data suggesting that it actually declined in March by 0.1%. Analysts had expected growth of 1.0% for the quarter, and stagnation in March.

Other data for March released on Thursday showed that industrial output fell for a second straight month, by 0.2%, while the trade deficit widened to 23.9 billion pounds on the month, from 20.6 billion in February.