Business News Asia
The Office for National Statistics (ONS) has announced that the UK economy continued to grow in Q1 22, despite a slowdown from the final quarter of 2021.
The ONS reported that UK gross domestic product (GDP) increased by 0.8% in the quarter. It slowed from a growth of 1.3% in 4Q21 and was below the expected growth of 1%.
Growth in the first quarter of 2022 was driven by a 0.6% increase in household consumption, partially offset by a sharp decline in international trade sales.
In March, the UK economy contracted by 0.1% month-on-month, indicating a further weakening of economic momentum at the end of the first quarter.
Economists predict that the UK economy will weaken further in Q2 22, with the risk of contraction increasing. This is due to higher inflation and interest rate hikes inhibiting economic activity and reducing consumers’ purchasing power.