Britain’s gross domestic product (GDP) rose 0.1% in the first quarter, in line with economists’ expectations, after an identical increase over the last three months of 2022, the Office for National Surveys announced on Friday. Statistics (NSO). For its part, GDP fell at the end of the quarter, with a contraction of 0.3% only in the month of March, after having stagnated in February and an increase of 0.5% in January, the statistics institute specified.

Growth in the first quarter “was driven by the IT and construction sectors,” but the economy was held back by strikes over wages “in health, education, and public administration,” Darren Morgan, director of Economic Statistics at the University of California, said on Twitter. ONS.

Growth of 0.25% in 2023

In March, the economy suffered from a “widespread decline in the service sector” but also from falling car sales and a difficult month for warehousing, distribution and retail, Darren Morgan added. “A weaker economy in March underscores its fragility despite falling wholesale energy prices, improving supply chains and consumer confidence,” said KPMG economist Yael Selfin.

The British economy, weighed down by inflation clinging to above 10%, was in recession until recently this year, after narrowly escaping it at the end of 2022. But the latest forecasts, including those published on Thursday by the Bank of England, are more optimistic.

To fight inflation, the Bank of England (BoE) raised its rates on Thursday for the twelfth consecutive time to 4.5%, taking them to their highest since October 2008 and the financial crisis, judging that the UK economy is holding up better than expected.

It now forecasts growth of 0.25% in 2023 and no quarters of contraction this year. “While recession is likely out of the picture, vulnerabilities from rising borrowing costs and credit crunching are expected to discourage business and household activity this year, business investment and government spending. Consumption should hold moderate in the short term,” adds Yael Selfin.