Britain’s economy grew at the slowest pace for a year at the start of 2022 sending the pound sliding to its lowest in two years against a buoyant US dollar and a seven-month low against the euro.
Sterling fell more than 1 per cent to $1.2185 at one stage of Thursday trading and 0.4 per cent down at 1.166 euros..
The Office for National Statistics (ONS) said gross domestic product (GDP) rose by a weaker-than-expected 0.8 per cent between January and March, down from growth of 1.3 per cent in the previous three months and the weakest since the first quarter of last year.
The figures showed that on a monthly basis, GDP fell by 0.1 per cent in March after growth stalled in February – revised down from the 0.1 per cent previous growth estimate – and rose by 0.7 per cent in January.
Above pre-pandemic level
While the expansion means GDP is now 0.7 per cent above levels seen before the pandemic struck, the figures are likely to mark the calm before the storm as warnings grow over a recession in the UK due to the cost-of-living crisis.
Darren Morgan, director of economic statistics at the Office for National Statistics (ONS), said: “The UK economy grew for the fourth consecutive quarter and is now clearly above pre-pandemic levels, although growth in the latest three months was the lowest for a year.”
He added: “Our latest monthly estimates show GDP (gross domestic product) fell a little in March, with drops in both services and in production.
“Construction, though, saw a strong month, thanks partly to repair work after the February storms.”
The Bank of England hiked in interest rates to a 13-year high of 1 per cent last week to try to curb inflation and warned the economy was set to stall in the second quarter, before contracting in the final three months and going into reverse overall in 2023.
While it said the UK was set to avoid a technical recession – defined as two quarters in a row of falling GDP – governor Andrew Bailey said growth would be “very weak”.
In a grim set of forecasts, the bank predicted that household income would suffer the second biggest decline on record this year, with inflation expected to peak at more than 10 per cent in October.
The National Institute of Economic and Social Research (Niesr) think tank predicted on Wednesday that the UK would fall into recession, forecasting a GDP contraction in the third and fourth quarters.
Chancellor Rishi Sunak said UK first quarter growth was faster than the US, Germany and Italy.
But added: “I know these are still anxious times.”
“Our recovery is being disrupted by Putin’s barbaric invasion of Ukraine and other global challenges, but we are continuing to help people where we can,” he said.
The figures showed the wind down of the coronavirus test and trace programme weighed on first quarter growth.
In March, the decline was led by a 0.2 per cent fall in output from the all-important services sector, with consumer-facing services down 1.8 per cent in a sign of the pressure already being felt among households.
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
BUNDESLIGA FIXTURES
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
The Comeback: Elvis And The Story Of The 68 Special
Simon Goddard
Omnibus Press
Top financial tips for graduates
Araminta Robertson, of the Financially Mint blog, shares her financial advice for university leavers:
1. Build digital or technical skills: After graduation, people can find it extremely hard to find jobs. From programming to digital marketing, your early twenties are for building skills. Future employers will want people with tech skills.
2. Side hustle: At 16, I lived in a village and started teaching online, as well as doing work as a virtual assistant and marketer. There are six skills you can use online: translation; teaching; programming; digital marketing; design and writing. If you master two, you’ll always be able to make money.
3. Networking: Knowing how to make connections is extremely useful. Use LinkedIn to find people who have the job you want, connect and ask to meet for coffee. Ask how they did it and if they know anyone who can help you. I secured quite a few clients this way.
4. Pay yourself first: The minute you receive any income, put about 15 per cent aside into a savings account you won’t touch, to go towards your emergency fund or to start investing. I do 20 per cent. It helped me start saving immediately.
Global state-owned investor ranking by size
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UAE
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LA LIGA FIXTURES
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
MATCH INFO
Manchester City 3
Danilo (16'), Bernardo Silva (34'), Fernandinho (72')
Brighton & Hove Albion 1
Ulloa (20')
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
