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British GDP beats estimates, expands 1.1% in Q2

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Press Trust of India London
Last Updated : Jan 20 2013 | 1:04 AM IST

The British economy expanded much higher than expected at 1.1 per cent in the second quarter of 2010, signalling that the growth momentum has picked up in recent times.

The British GDP beats estimates, expands 1.1% in Q2major, one of the worst hit by the global financial meltdown in 2008-09, saw a sluggish expansion of 0.3 per cent in the first three months of 2010. Analysts were expecting GDP to grow around 0.6 per cent in Q2.

"Gross domestic product increased 1.1 per cent in the second quarter of 2010, compared to an increase of 0.3 per cent in the previous quarter," Office for National Statistics said in a statement here today.

Going by reports, the latest quarterly expansion is the highest in nearly four years. The good performance came on the back of robust growth in service, construction and production sectors.

Output of service industries rose 0.9 per cent while that of construction went up 1 per cent. "Construction (output) increased 6.6 per cent compared to a decrease of 1.6 per cent in the previous quarter," the statement noted.

The better-than-expected GDP figure comes in the backdrop of the Eurozone debt turmoil threatening to hit the fragile economic recovery.

Meanwhile, Britain has embarked on massive austerity measures as part of efforts to bolster economic growth.

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First Published: Jul 23 2010 | 4:45 PM IST

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