- UK GDP expanded by 0.8% qoq in the first quarter vs. 1.0% expected.
- UK GDP came in at -0.1%m/m in March vs. 0.1% expected.
- GBP/USD hits new two-year lows below 1.2200 after poor UK GDP.
In the three months to March, the British economy grew by 0.8% in quarter-on-quarter termscompared to 1.3% registered in the fourth quarter of 2021 and the 1.0% forecast.
In annualized terms, the Kingdom’s GDP rose to 8.7% year-on-year in the first quartervs. 9.0% expected and 6.6% prior.
The UK’s monthly GDP release showed that the economy contracted in March, standing at -0.1% vs. 0.1% expected and 0.1% prior.
market reaction
GBP/USD remains under pressure below 1.2200 after UK growth figures. The pair is down around 0.50% on the day, hitting a fresh two-year low.
About UK GDP
The GDP published by National Statistics is a measure of the total value of goods and services produced by the UK. GDP is considered a broad measure of economic activity and indicates the rate at which a country’s economy is growing. A reading above expectations is bullish for the pound, while a reading below is bearish.
Source: Fx Street
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