ALBAWABA – Data issued by the United Kingdom (UK) Office for National Statistics (ONS) showed signs of the UK economy achhieving modest growth in April on strong consumer spending, Agance France-Presse (AFP) reported Wednesday.
Gross domestic product increased by 0.2 percent in April, following a fall of 0.3 percent in March, the statistics authority said in a statement.
According to AFP, these figures indicate the possibility of avoiding a recession in the UK, despite high inflation and rising interest rates.
Economic activity was boosted by consumer expenditure on shopping and hospitality, and the results are in line with market expectations, the news agency said.
"GDP bounced back afer a weak March," said ONS director of economic statistics Darren Morgan.
"Bars and pubs had a comparatively strong April, while car sales rebounded and education partially recovered from the effect of the previous month's strikes," he added.
The British economy is 0.3 percent larger than its pre-pandemic level, AFP said.
Finance minister Jeremy Hunt welcomed the upbeat data but warned about the outlook.
"We are growing the economy," Hunt told AFP, "but high growth needs low inflation."
UK annual inflation slowed to a 13-month low in April, but remains elevated at 8.7 percent.
Soaring food prices offset weaker energy costs, while official May data is due to come out next week.
The Bank of England, last month, hiked its key interest rate to 4.50 percent for the 12th increase in a row. The central bank is widely expected to hike again next week in a bid to tame stubbornly high consumer prices.
"The likelihood of recession continues to fade," said Jack Sirett, partner at global financial services firm Ebury.
But "persistent inflation and higher interest rates continue to constrain the UK economy,” even as April marked a welcome return to growth, she concluded.
