The U.K. economy escaped recession in the first quarter as previously estimated, final data from the Office for National Statistics showed Thursday. Disposable income of households declined at the sharpest pace since 1987.
Gross domestic product expanded 0.3 percent in the first quarter, reversing last quarter's 0.2 percent contraction. Compared to the first quarter of 2012, the economy grew 0.3 percent, following nil growth in the prior quarter.
In the first quarter, GDP was estimated to have been 3.9 percent lower than the pre-financial crisis peak in the first quarter of 2008. The peak to trough fall of the economic downturn in 2008/09 is estimated to be 7.2 percent.
Revisions of past GDP figures showed that the economy never registered a double-dip recession in 2012. The ONS today said the economy stagnated in the first quarter of 2012 instead of previously estimated 0.1 percent fall.
So there weren't two straight quarters of decline, the technical definition of a recession.
Disposable income declined 1.7 percent following a 0.1 percent rise in the fourth quarter, data showed. The decrease was mainly driven by a fall in wages.
In a separate communique, the ONS said the current account deficit widened to GBP 14.5 billion from GBP 13.6 billion in the previous quarter. The deficit was equivalent to 3.6 percent of GDP.
For comments and feedback: editorial@rttnews.com