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UK economy grows by 0.8% in quarter one

Hannah Smith
Written By:
Hannah Smith
Posted:
Updated:
29/04/2014

The UK economy expanded by 0.8 per cent in the first quarter of the year, slightly below economists’ expectations.

The first estimate of the figure for the first quarter, released by the Office for National Statistics (ONS) this morning, just missed predictions of 0.9 per cent, although markets remained firmer after the figure was released.

This is the fifth successive quarter of growth, as the economy moves closer to its pre-crisis norm. Figures for the fourth quarter of 2013 showed growth of 0.7 per cent.

The gains have left the UK economy just 0.6 per cent below its pre-crisis peak, the ONS said. From peak to trough, the UK’s economy shrank by 7.2 per cent in the aftermath of the financial crisis.

Jeremy Cook, chief economist at the currency brokers, World First, said: “While this figure has missed estimates, slightly, the overall feeling is still one of strength in the UK. In fact, this is the kind of news the economy needs – solid but not spectacular.”

Sterling dipped slightly against the dollar as the data was released.

Earlier this month, the International Monetary fund said it expects the UK to be the G8’s best performing economy in 2014, wih overall growth of 2.9 per cent.

Today’s figure will add weight to the Bank of England’s plan to raise interest rates from their historic low of 0.5 per cent as the economic recovery gains ground.