Third quarter GDP growth confirmed at 0.8%

(SHARECAST) – The UK economy grew 0.8 percent in the third quarter, new figures have confirmed.

Strong export figures boosted the growth figures, which surprised many when they were initially released last month. Analysts had been predicting growth of  0.4 percent for the three-month period.

Net trade contributed 0.4 percent to growth over  Q3, with sterling’s weakness against other currencies boosting exports.

Growth is likely to slow from the fourth quarter as government spending cuts aimed at addressing the country’s deficit begin to take effect.

Howard Archer, chief European and UK economist at  forecasting group IHS Global Insight predicts GDP growth of 0.5 percent for Q4, with shoppers seeking to beat the VAT rise in January.

“We expect GDP growth to slow to 0.3 percent quarter-on-quarter in the first half of 2011, before picking up gradually helped by global growth regaining upward momentum in the second half of 2011,’ he said.