NIESR: Britain’s economy grew by 0.5%

The British economy grew at a serious rate of 0.5% in the three months to November, according to the National Institute for Economic and Social Research (NIESR) of the country, released after strong industrial production.

NIESR noted that this growth supported the decision of the Bank of England to raise interest rates for the first time in the last decade last month. The indicator grew significantly after the weak first half of the year, as well as in comparison with the growth of 0.4% in the last quarter.

“GDP growth of 0.5% was slightly higher than the restriction of the speed of the economy,” said NIESR economist Amit Kara.

“If, as we expect, the economy will continue to expand at such a rate, and inflation will continue to be overvalued, it is likely that the Bank of England will gradually raise the rate to stop overheating of the economy,” he added.

In October the UK industrial sector demonstrated the sixth consecutive monthly growth, which indicates that British plants benefit from the weakness of the pound sterling and strong global demand.

The figures published by the Office of National Statistics on Friday show that the British economy entered the last quarter of the year on a decent basis. The manufacturing industry accounts for about a fifth of the British economy, which is mainly based on the services sector.