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April 12, 2022: -On Monday, growth in Britain’s economy slowed more sharply than expected in February as gross domestic product increased by 0.1%, official figures showed, down from 0.8% growth in January.
The expansion was less than a 0.3% increase forecast in a Reuters poll of economists.
Britain’s economy in February was 1.5% larger than it was two years earlier, just before the Covid-19 pandemic hit the country, the Office for National Statistics said.
Britain’s economy shrank more than 9% in 2020, its biggest annual fall since just after World War One. However, in December, it rebounded sharply in 2021 and suffered only a modest hit from the Omicron variant of coronavirus.
However, economists have downgraded their growth forecasts for 2022 due to a surge in inflation caused by rising energy and commodity prices — partly linked to the war in Ukraine and ongoing supply-chain difficulties since the pandemic.
Last month the government’s Office for Budget Responsibility cut its forecast for growth in 2022 to 3.8% from 6.0% in its previous forecast in October, predicting that inflation would hit a 40-year high of 8.7% later this year.
Britain’s dominant services sector drove monthly growth in February, boosted by travel and tourism, while industrial output fell by 0.6%, reflecting falls in car production and other areas due to component shortages.
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