UK Economy Grows 0.5% in Q1

The latest growth figures show a reduced likelihood of the UK economy slipping back into recession with a weak but positive expansion of 0.5 percent for the first quarter of the year. This follows the contraction of half a percent in the second half of 2010.

Still, the UK is not out of the woods and with the impact of planned government spending cuts to reduce the deficit still to be accounted for, many questions remain.

“These figures were mixed and well below the Office for Budget Responsibility prediction that the economy would grow by 0.8% in the quarter,” noted David Kern, the chief economist at the British Chambers of Commerce. “Given the fragility of the recovery, it is vital for the government to persevere with policies that support growth, and remove the obstacles that prevent businesses from creating jobs and exporting.”

Source: BBC News

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