UK economy sees modest growth in Q1 despite inflation and March slump.
The UK economy grew by 0.1% in Q1 2023, with the construction sector expanding by 0.7% and manufacturing performance going up by 0.5%. However, there was no growth in real household expenditure due to persistent inflation. The Bank of England raised interest rates to 4.5% to combat stubbornly high prices and no longer expects the UK to enter a recession this year. The central bank forecasts the UK GDP to be flat over H1 2023, growing 0.9% by mid-2024 and 0.7% by mid-2025.