Pak Sahafat – The latest report from the British National Bureau of Statistics released on Thursday shows that economic growth in Britain has slowed down due to unprecedented inflation.
According to the published statistics, the British economy in the first quarter of this year has decreased by 0.5% compared to the previous period. According to the Office for National Statistics, the economy grew by 0.8% between January and March, down 0.5% from 1.3% in the previous three months.
Gross domestic product also declined 0.1 percent in March after not growing in February.
The Bank of England last week raised the risk of a recession in a statement as inflation rose to its highest level in 13 years and inflation hit a 40-year high.
Economic forecasts suggest that due to another jump in energy prices, the inflation rate will reach above 10% by the end of this year.
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Darren Morgan, director of economic statistics at the National Bureau of Statistics, said the published figures showed the consequences of rising living costs. He says retail trade is much lower than expected and people have reduced their spending on “non-essential items”.
Morgan also said fuel sales fell sharply in March as people reduced their car trips due to high energy costs.
The British Automobile Manufacturers and Traders Association announced that March has been the “weakest” time for new car registrations since 1998, as spare parts problems continue to plague automakers.
The economic situation in Britain due to the Corona crisis, London’s withdrawal from the European Union and the new situation resulting from the war in Ukraine is not well defined. Commodity prices have risen by up to 60 percent over the past three months, and this trend is expected to continue in the coming months.
In such a situation, the government has resorted to raising taxes since last April to compensate for the budget deficit, and this has led to widespread protests inside.
Although all European countries are in economic crisis and inflation has skyrocketed, statistics and polls show that the UK is in the worst position in all respects compared to all OECD countries.