LONDON, March 28: Britain’s economy grew by less than expected last year, official data showed on Friday, as analysts warned of a harsher slowdown in 2008 because of the global credit crunch.

The Office for National Statistics (ONS) said on Friday in a third and final estimate that the economy grew by 3.0 per cent in 2007, which is less than the previous estimate of 3.1 per cent given in February.

“We believe the UK is set for an extended period of markedly below-trend economic growth, although we remain hopeful that it will avoid recession,” said Howard Archer, chief Britain economist at the Global Insight consultancy.

“Consumer spending is expected to flag appreciably in the face of muted disposable income growth, tighter lending conditions, a substantially softer housing market, lower equity prices and increased debt levels.”

British finance minister Alistair Darling in first annual budget, forecast that the economy would grow by 1.75-2.25 per cent in 2008, as he cut an earlier government estimate of 2.0-2.5 per cent amid ongoing financial markets turmoil.—AFP