Business
Britain’s economy grows 0.2% in first quarter
Fears of double-dip recession recede
Britain’s economy grew in the first quarter of the year in spite of severe winter weather and tax rises, diminishing the prospect of a double-dip recession. Official figures on Friday showed that the economy was 0.2 per cent larger between January and March than in the previous three months. The growth was a touch lower than the 0.4 per cent expected by economists, and was in a range that will enable all political parties to claim it vindicates their economic positions.
Labour and the Liberal Democrats will claim that the low rate of growth – well below Britain’s normal quarterly rate of 0.6 per cent – shows that the recovery remains fragile. The figures are consistent with the economy growing in line with the Budget forecast of 1-1.5 per cent, and centre-left politicians will claim that the further fiscal tightening this year advocated by the Conservatives threatens to undermine the recovery…