UK grows in Q1 but only just

The UK suffered a 0.3% contraction in its economy in the last month of Q1, but still managed to register 0.1% GDP growth for the quarter as whole. This was due to lower energy prices, stronger global growth, and more robust consumer and corporate confidence. However, the Bank of England raised interest rates to 4.5%, a 15-year high, on Thursday and with this yet to fully impact the economy, it is too soon to sound the all-clear in terms of avoiding recession. First-quarter growth was driven by IT and construction, but government consumption and net trade were a drag on growth. Business investment rebounded by 0.7%, but remained below pre-pandemic levels. The UK still lags behind the US and the eurozone in economic recovery.