UK March GDP Growth Rate -0.1%... Consumption Shrinks Due to Inflation Impact

[Image source=EPA Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The United Kingdom's GDP growth rate for March has turned negative amid a global inflationary trend. With consumption shrinking due to rapid price increases, concerns are growing that the economic situation will worsen further.

According to the BBC on the 12th (local time), the UK Office for National Statistics (ONS) announced that the GDP growth rate for March decreased by 0.1% compared to the same month last year. The overall growth rate for the first quarter was only 0.8%. This fell short of the 0.9% growth forecast announced earlier by the Bank of England (BOE). The market had expected a growth rate of around 1.0%.

Darren Morgan, head of UK economic statistics, told the BBC, "The problems caused by rising living costs are really starting to appear," pointing out that "due to rising oil prices, people are driving less and purchasing fewer non-essential goods." Additionally, supply issues with semiconductors and other factors have disrupted automobile production, resulting in the lowest number of new car registrations in March since 1998.

With ongoing supply chain problems from the COVID-19 aftermath and the sharp rise in prices of key items such as food, oil, and raw materials following Russia's invasion of Ukraine, there are concerns that the economy will deteriorate further. The BOE previously warned last week that the inflation rate forecast, which was 7% in March, could rise to over 10% by the end of the year.

This content was produced with the assistance of AI translation services.