Chancellor George Osborne warned growth in the first quarter of 2011 did not mean the economy had recovered
The latest data from the Office for National Statistics (ONS) reveals the UK economy grew by 0.5 percent in the first three months of 2011.
This represents a substantial recovery from the 0.5 percent contraction recorded for the last quarter of 2010, and will go some way to alleviate concerns the country may be heading towards a double dip recession.
But Chancellor George Osborne – who saw the figures yesterday – warned the country was ‘not out of the woods yet.’
The low rate of growth may cause concern for economists, who previously warned that less than 1 percent growth in the first quarter would make the country’s ability to absorb the coalition government’s austerity measures questionable.
However, the low growth is likely to ease pressure on the Bank of England’s Monetary Policy Committee to raise interest rates to combat inflation.