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UK Economy Said to Have Expanded 0.9% in Q1: NIESR

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UK Economy Said to Have Expanded 0.9% in Q1: NIESR

UK GDP expanded at a steady rate in the three months through March, offering further sign the economy is on pace to recover its pre-recession peak.

The UK economy accelerated 0.9 percent between January and March, the National Institute of Economic and Social Research reported today. UK GDP was revised from 0.8 percent to 0.9 percent in the three months through February.

“This robust growth was relatively broad based,” the NIESR said today in a press release. “Even though the level of economic output has almost regained its pre-recession peak (January 2008), a sizeable negative output gap remains. With economic recovery still in its infancy, we do not expect the MPC to change monetary policy, via an increase in interest rates, until the middle of 2015.”

The report was released shortly after the International Monetary Fund said the UK will outperform other advanced economies this year. The UK’s economy is forecast to expand 2.9 percent this year, as consumer spending and employment continue to rebound. Revised estimates from the Office for National Statistics showed the UK economy expanded 1.8 percent in all of 2013.

The UK and United States are expected to anchor global recovery this year and next, according to the IMF’s World Economic Outlook. The global economy is expected to expand 3.6 percent this year and 3.9 percent in 2015. Global GDP increased 3 percent in all of 2013.

Britain’s recovery, which gained traction in early 2013, has been spearheaded by consumer spending and housing activity. However, without a commensurate rebound in exports, it is uncertain whether the Kingdom’s current recovery pace could be sustained. The Bank of England raised concerns about exports last month, claiming that a stronger British pound could weigh on the country’s already shaky export recovery.

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