David Milliken

LONDON, (Reuters) – Growth in Britain’s economy slowed further than anticipated in February, as gross domestic product rose 0.1%. Official figures on Monday showed that this was down from 0.8% in January.

According to Reuters, the expansion was 0.3% less than what economists had predicted.

The British economy, as measured by the Office for National Statistics in February, was 1.5% more than it was two-years earlier. This was just prior to being hit with the COVID-19 pandemic.

Britain’s economy contracted more than 9.9% in 2020. This was its largest annual drop since right after World War One. However, it rebounded strongly in 2021. In December, however, there was only a slight hit by the Omicron coronavirus.

Economists however have lowered their growth projections for 2022 because of an increase in inflation due to rising commodity and energy prices. This is partly related to the conflict in Ukraine, as well as continuing supply-chain problems since the pandemic.

Last month, the Office for Budget Responsibility (government’s Office for Growth) reduced its projection for growth for 2022 from 6.0% to 3.8%. This was compared with its October forecast of 6.0%. The forecast predicted that inflation will reach an all-time high of 8.7% this year.

British’s most important services sector drove February’s monthly growth – driven by tourism and travel – but industrial output dropped by 0.6% due to falls in auto production, and other components shortages.