BRITAIN'S economy grew at its slowest rate in nearly three years in the last quarter year - but managed to avoid grinding to a halt, figures showed yesterday.

Data from the Office for National Statistics (ONS) showed the economy grew 0.2 per cent in the fourth quarter of 2001, a slide from the 0.5 per cent recorded in the third, and its slowest quarterly growth since the beginning of 1999. Year-on-year growth slowed to 1.9 per cent.

However, economists said the figures showed an impressive performance. Some had forecast growth grinding to a complete halt in the quarter, following the September 11 terror attacks in the US.

The data was helped by a robust performance from the services sector which recorded an above-forecast 0.9 per cent growth, although manufacturing saw sharp declines.

Full year figures for 2001 from the ONS show the economy grew 2.4 per cent over the year. The UK has now registered growth for nine and a half years running.

Treasury Chief Secretary Andrew Smith said the figures showed Britain was well placed to weather the global slowdown.

''As we have always made clear, no country can insulate itself from the ups and downs of the world economy. Britain is much better placed than in the past to steer a course of economic stability.

Ian Fletcher, chief economist at the British Chambers of Commerce, said: ''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."