UK economic growth to chalk 13-year low

The economy growth in UK is expected to reach its lowest point 13 years after official figures released in the weekend showed a fifth consecutive quarter down.

The Office for National Statistics showed that the economy grew by 0.4 percent in the third quarter, which was weaker than the 0.5 percent growth in the previous quarter. The figures were in line with expectations.

Ross Walker of Royal Bank of Scotland, was quoted by Financial Times on Saturday as saying that the economy was on track to grow by 1.6-1.7 percent this year, which would be the weakest performance since 1992.

This means that the economy would have to grow by 1.8 percent in the final quarter to reach the target of 2 percent growth for this year compared with last year, a figure not seen since 1987.

The growth figure was just half the growth rate of 3 to 3.5 percent predicted by the chancellor in the Budget in March. Last month he admitted the 2005 forecast was likely to be lowered to "at or slightly below" 2.5 percent in next month's pre-Budget report.

Although growth was below trend for the fifth successive quarter, analysts said it was likely still to be solid enough for the Bank of England to justify leaving its main interest rate unchanged next month.

The annual growth rate edged up to 1.6 percent in the second quarter from 1.5 percent.

Source: Xinhua