The British economy grows faster than expected 0.7% in the first quarter

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The economy of the United Kingdom grew 0.7 percent in the first quarter, exceeding expectations and promoted a boost in the labor force ahead of the impact of the rates of the President of the United States, Donald Trump.

The GDP figure on Thursday during the first three months of the year was higher than the 0.6 percent forecast by economists in a Reuters survey and the expansion of 0.1 percent in the fourth quarter.

In March, the economy 0.2 percent was expanded compared to non -growth analysts. The performance of the first quarter was promoted by an increase in investment and a positive contribution of clean trade, according to the Office of National Statistics.

The labor government says that growth is its highest priority, although its critics accuse it of curbing the economy with measures as an increase in national insurance contributions of businessmen who came into force last month.

Welcoming the bounce of the first quarter, Chancellor Rachel Reeves said: “Against a context of the global uncertainty that we make the right decisions now in national interest.”

Economists warned that Thursday’s figures are based on data collected before the Trump announcement of the April 2 rates in world countries, including 10 percent of the United Kingdom’s imports.

Many say rates will affect global growth, although Trump has reduced many.

While Washington and London agreed to a limited trade Offer last week: Download rates to car and steel exports in the United Kingdom to the United States.

Simon Pittaway, a senior economist in the resolution, said that “this growing bounce is unlikely, with April data that seem much weaker and huge clouds in the form of a hanging rate on the global economy.”

The Bank of England has already warned that the growth of the first quarter is likely to be “significantly above” the underlying economic moment of the United Kingdom, emphasizing weak productivity and high loans. The central bank hopes that growth will slow up to 0.1 percent in the second quarter.

It UK GDP During the first quarter of this year it is compared with an expansion of 0.4 percent in the euro area during the period and a contraction of 0.1 percent in the United States, which are distorted by an increase in imports.

The BOE reduced the rates by a quarter to 4.25 percent this month, but Governor Andrew Bailey emphasized that the interest rate path was not in “automatic pilot” as officials evaluate the effect of United States rates.

Following the data publication, the pound increased 0.2 percent from the dollar to $ 1,329.