GDP figures released on Friday reveal a slowdown in the growth rate of the British economy.

In 2001 the economy grew by 2.4 per cent compared to the three per cent growth seen over the previous year, although this is still comfortably within the government target of between 2.25 and 2.75 per cent.

The Office of National Statistics also said that GDP increased by 0.2 per cent in the last three months of last year, down by a half per cent on the previous quarter.

The downturn has been blamed predominantly on the global economic slowdown, and the effects of September 11. The poor performance of the manufacturing sector also had an impact.

Chief economist at the British Chambers of Commerce, Ian Fletcher, said: "Today's data is par for the course. Our economy had everything bar the kitchen sink thrown at it during the last quarter of 2001 and the fact that it still grew is testament to some nimble footwork from the Bank of England and the spending power of consumers.

"Clearly manufacturing is facing some of its most testing conditions abroad, but the economy overall should avoid recession if the MPC keeps its hand steady on the tiller and sustains demand at home."

"Today's GDP figures showing a slowdown in growth in Q4 are no surprise and they are in line with expectations. However, evidence that growth remained positive highlights the two-speed economy with a weak manufacturing sector and a relatively buoyant retail sector. The figures confirm that the Bank of England's policy of cutting interest rates has been working," a spokesman for the Confederation of British Industry told ePolitix.