The UK faces a big challenge to sustain its recovery this year after the latest published data showed the country’s economy grew slowly in February.
The UK’s Gross Domestic Product (GDP) grew by 0.1% in February, down from 0.8% recorded in the previous month and slightly falling short of expectations for 0.2% growth.
The growth recorded in January reflected the continued easing of coronavirus restrictions, putting the UK on track for an expansion of around 1% in the first quarter.
However, due to the surge in energy prices and inflation to a 30 -year high that pushed the cost of living higher, such expectations may not be met.
The initial reaction from the pound showed the currency slipping below the 1.3000 price level as well as being pressured by stronger greenback dollar trading, seeing the dollar index once again touch the price of 100.00 against other major competitors.
Meanwhile, the manufacturing sector declined unexpectedly after being driven by material shortages that limited production from carmakers.
This in turn reflects the disruption of the global supply chain disruption affected by the Covid-19 outbreak and possibly exacerbated by the Ukraine-Russia war.
