LONDON (Reuters) - Britain’s economy avoided a renewed recession by the smallest possible margin, the National Institute of Economic Research (NIESR) estimated on Thursday.
Gross domestic product probably grew by 0.1 percent in the first three months of 2012, avoiding a second consecutive drop after a 0.3 percent contraction in the final quarter of 2011, the institute said.
“With such weak rates of growth the UK’s negative output gap is likely to widen,” NIESR said. “But we do expect this economic weakness to be temporary, with the recovery taking hold in 2013.”
Reporting by Sven Egenter