The outlook for the UK economy remains strong, despite GDP growth slowing to 2.4% in Q1 from 3.0% in the previous quarter. Public finances continue to improve but the UK deficit widened, rising from £2.9 billion in February from £1.5 billion in January. The widening deficit mainly reflects a fall in exports of goods to non-EU countries, particularly the US.
The global outlook continues to be uncertain as China and US growth slowed in Q1. The US economy slowed as a result of a 7.2% fall in exports and weaker consumer spending and investment. The slow down of the Chinese economy mirrored a similar economic slow down seen in the previous year. The world’s second largest economy grew at an annual rate of 7.0% in Q1, a drop fro 7.3% in the previous quarter.
