British Economy Grows by 0.5%
Modest growth recorded in first quarter of 2011.
Preliminary estimates that the British Economy grew by 0.5% in the first quarter of the new year. While this means that the economy is not going into a ‘double dip’ recession as many had feared, economists predicted that a growth level of less than one per cent would have a profound effect on the economy.
Coupled with surging inflation, the latest figure casts doubt as to whether or not the country will be able to cope with the austerity measures being implemented by the coalition government.The sector that suffered the worst was construction. Financial experts predict that the disappointing result for the first quarter will make an interest rate rise next month unlikely.