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UK economy grows as pre-Brexit stockpiling lifts factories

Britain surprised and grew unexpectedly in February, according to the office for National Statistics.

It says the economy expanded by 0.2 percent from the previous month and by 0.3 percent in the three months to February.

Economists in a Reuters poll had expected no growth at all.

Much of it is due to manufacturers rushing to meet orders from clients stockpiling goods ahead of the UK's departure from the EU.

And growth is still sluggish.

Even with a Brexit deal, it's set for its weakest reading in a decade this year, according to IMF and the Bank of England's forecasts.

Still, that's a fraction more than neighbours Germany, or France.

But the UK also has a global slowdown and a trade war to contend with.

(SOUNDBITE) (English) GITA GOPINATH, THE IMF'S CHIEF ECONOMIST, SAYING: "Tensions in trade policy could flare up again.

Growth in systemic countries areas like the euro area and China could surprise on the downside; and the risks surrounding Brexit remain heightened." The IMF said on Tuesday Britain's economy would grow by 1.2 percent this year if it leaves the EU with a transition deal.

But added that 3.5 per cent would be slashed off growth by end of 2021 in a no-deal scenario.

Prime Minister Theresa May is in Brussels to try and avert that outcome by asking EU leaders for a new delay to Brexit, just two days before Britain is due to leave the bloc.




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