After outperforming the US and many of its European counterparts in 2001, the UK economy posted its slowest year-on-year growth for a decade in the first quarter of 2002.

According to preliminary results from the Office for National Statistics, GDP in the first three months of the year rose 1% on the same quarter last year, the smallest increase since 1992.

Compared with Q4 2001, GDP grew by just 0.1%, below analysts’ expectations of 0.4%. Although the results may be revised upwards, they are unlikely to prompt a rise in interest rates by the Bank of England’s Monetary Policy Committee next month.

Many economists do not expect the UK to repeat last year’s feat of leading the Group of Seven industrialised economies in terms of economic growth. In contrast, the US posted year-on-year growth of 5.8% for the first quarter [WAMN: 29-Apr-02].

Data sourced from: The Wall Street Journal Online; additional content by WARC staff