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British preliminary GDP growth slows to 0.4 pct in Q1

Xinhua, April 28, 2016 Adjust font size:

British economic growth slowed by 0.4 percent in the first quarter of 2016, down from 0.6 percent in the fourth quarter of 2015, the Office for National Statistics (ONS) said Wednesday.

On an annual basis, GDP was 2.1 percent higher in the first quarter.

Output increased in services by 0.6 percent in the first quarter. The other three main industrial groupings within the economy decreased, with production falling by 0.4 percent, construction output by 0.9 percent and agriculture by 0.1 percent.

In an interview with local media, the Chancellor of the Exchequer George Osborne said he is "the first" to admit there are other issues with the British economy.

Poor productivity, weak exports and falling industrial production and construction figures are more than a short-term reaction to the referendum vote on June 23, analysts said.

Some economists consider the slowdown of British economic growth temporary. Capital Economics expert Ruth Miller commented: "There is still a risk that Brexit jitters will further sap the recovery of its momentum in the second quarter. But even if growth did continue to slow, so long as the British voted to stay in the European Union, we would probably see a bounce-back in the third quarter."

"So we would not be surprised if growth were to subsequently accelerate in the second half of the year, putting the economy back on track to meet our full-year forecast," she added. Endit