The UK economy experienced sluggish growth in the first quarter of 2023, according to official data. Despite the 0.1% increase in Gross Domestic Product (GDP), the

same pace as in the previous quarter, the economy remains vulnerable to the headwinds of inflation.

A sharp decline in March also highlighted the fragility of the UK's recovery. Although industrial output and construction grew, the services sector shrank 0.4% due to weak car sales and retail, worsened by rainy weather and high inflation. Industrial action also contributed to the reduced economic activity in Q1.

The country's inflation rate was 10% in March, double that of the US, and the Bank of England raised its main interest rate to 4.5% on Thursday, the highest since 2008. Tom Stevenson, personal investing director at Fidelity International, said that "with the key services side of the economy continuing to slow in the face of higher borrowing costs and rising prices, it still feels like we're walking through treacle." Photo by Katie Chan, Wikimedia commons.