British economy rebounds strongly in Q1

The British economy bounced back strongly in the first three months of the year, bringing to an end to what economists termed a “technical recession”, official figures showed Friday.

The Office for National Statistics said the economy grew by 0.6 per cent in the first quarter from the previous three-month period, with broad-based strength across the crucial services sector in particular. The increase was higher than the 0.4 per cent predicted by economists and the strongest since the fourth quarter of 2021 when the economy was rebounding following the sharp contraction during the coronavirus pandemic. It comes after two quarters of modest declines, which in the UK is defined as a recession. Despite the quarterly increase, the British economy has barely grown over the past year. It has been hobbled by interest rates at 16-year highs of 5.25 per cent.