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The British economy increased by 0.7% in the first quarter, the fastest rate in one year, in a boost of work before the impact of the prices of US President Donald Trump.
The GDP figure on Thursday for the first three months of the year was greater than 0.6% forecast by economists in a reuters survey and against the expansion of 0.1% in the fourth quarter.
The performance of the first quarter was fed by an increase in investment and a positive contribution of net trade, according to the Office for National Statistics. In March, the economy increased by 0.2% compared to forecasts by analysts without growth.
The Labor Government says that growth is its absolute priority, although its criticism accuses it of slowing down the economy with measures such as an increase in national employers’ insurance contributions that came into force last month.
PRE PREPANT The rebound in the first quarter, Chancellor Rachel Reeves said: “Today’s growth figures show the British force and potential.”
Mel Stride, the Chancellor of the Shadow, struck the increases in government taxes and said that “the two OBRs [Office for Budget Responsibility] And the IMF has lowered the UK growth [forecasts]».
Economists have warned that Thursday’s figures are based on compiled data before Trump’s announcement on April 2 prices on the countries of the world, including 10% of imports on imports from the United Kingdom.
Many say that prices will reach global growth, even if Trump has reduced many of them.
While Washington and London concluded a limited trade agreement last week – reducing prices on British car and steel exports to the United States – the 10% flat load remains in place.
Simon Pittaway, the main economist at Resolution Foundation, said that “this growth rebound should not last, the data for April seemed much lower and the clouds of huge prices that drag on the world economy”.
Economists also suggested that the growth of the first quarter was stimulated while businesses were looking to ahead of Trump’s prices.
Paul Dales, an economist at Consultancy Capital Economics, said that an increase of 5.9% of commercial investment in the period was “completely in contradiction with diving in the feeling of companies”.
Export volumes increased by 3.5% in the first three months of the year, taking three consecutive quarterly decrees, with exports to American climbing.
The Bank of England has already warned that the growth of the first quarter should be “much above” of the underlying economic impetus of the United Kingdom, highlighting low productivity and high borrowing costs. The central bank expects growth to slow down 0.1% in the second quarter.
British GDP for the first quarter of this year is compared to an expansion of 0.4% in the euro zone during the period and a contraction of 0.1% in the United States – figures that were distorted by an import wave.
The BOE reduced rates by a quarter to 4.25% this month, but Governor Andrew Bailey stressed that the interest rate route was not on the “automatic pilot” because civil servants assess the effect of American prices.
After the data press release, the book increased 0.2% compared to the dollar to $ 1.329.
Additional Sam Fleming reports
