The UK economy grew 6.6% in July as the recovery continued

The UK economy grew 6.6% in July as the recovery continued

A woman wearing a surgical mask crossed the Royal Exchange on March 11, 2020 in the financial district of the capital London, England.

Richard Baker | In pictures via Getty Images

The UK economy grew 6.6% in July, according to preliminary estimates released on Friday, as the economy recovers from a sharp decline caused by corona virus-induced locking operations.

Estimated growth in July GDP (GDP) Economists who voted for Reuters expect a monthly expansion of 6.7%, following growth of 8.7% in June and 2.4% in May, followed by a 20% decline in April.

Friday data from the Office for National Statistics (ONS) showed a 11.7% decline compared to the same period last year, which was slightly below expectations of a 11.4% contraction.

“Even if it continues steadily on the path to recovery, the UK economy should still have almost half the GDP lost since the outbreak,” ONS Economic Statistics Director Darren Morgan said in a statement on Friday.

In July the UK GDP was 18.6% higher than its April 2020 level, but 11.7% lower than the pre-epidemic levels seen in February.

Thomas Buck, UK economist at Capital Economics, said that although growth in July was slightly lower than the previous month, the negative growth rate in GDP in the second quarter was expected to remain at a record positive growth rate. Third. UK GDP contracted by 20.4% in the second quarter of 2020.

“However, July will probably be the last of the major stages of the process, and a full recovery will not be achieved until early 2022, which is why we think the Bank of England will further expand QE (size easing) to a total of 250 250 billion,” Buck said.

READ  Heartless scammers steal $100k off WA spouse and children as NBN Co difficulties warn over two new scams concentrating on citizens

The country’s emergence of locking operations and reopening of hotels and restaurants in recent months means that the activity of the accommodation and food service sector rose by 140.8% per month in July, contributing to a 6.1% expansion in total service output.

You May Also Like

Cory Weinberg

About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

Leave a Reply

Your email address will not be published. Required fields are marked *