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Friday, April 28, 2017

UK economic growth shows weakest growth since Brexit vote

The UK economy grew by 0.3% in the first three months of the year, suggesting a Brexit-linked slowdown, according to worse-than-expected official figures.

In a blow to the Chancellor ahead of the General Election, the Office for National Statistics (ONS) said retail sales were the biggest drag on first quarter growth, which came in at its weakest level since the EU referendum last June.

The first estimate - which is subject to revision as more information becomes available - marked a sharp slowdown on the 0.7% expansion achieved in the final quarter of 2016 when the economy had continued to defy pre-referendum predictions of a recession in the event of a Leave win.

Economists had been expecting a growth figure of 0.4% at the start of the year amid clear evidence of a squeeze on household budgets.

Labour's shadow chancellor, John McDonnell, seized on the performance, saying: "Today's GDP figures reveal the threat to living standards under the Tories."

"This General Election is a choice between a Labour Party who will stand up for the many and a Tory party which only looks after the privileged few," he added.

Chancellor Philip Hammond said: "Britain's economy is forecast to grow at 2% this year, employment is at record highs and it's set to go higher still."

He said the choice facing the electorate was between strong and stable government under Theresa May or a Jeremy Corbyn-led "coalition of chaos".

:: Is Chancellor Philip Hammond being gagged over GDP?

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