The UK economy grows more than expected thanks to the lifting of restrictions due to Covid-19. According to data published this Thursday by the British Statistical Office (ONS), the Gross Domestic Product (GDP) registered a growth in the second quarter of 4.8%, close to the 5% pace predicted by the Bank of england (BoE) last week. In month-on-month rate, it increased 1%.
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A strong recovery from worst recession in three centuries has left the economy 2.2% smaller than before the coronavirus lockdowns, the ONS said. Statisticians affirm that health services and resurgence of hospitality they were the main drivers of growth in June. Education increased during the quarter after schools reopened.
“The figures show that our economy is improving, showing strong signs of recovery“They assure from the Ministry of Finance.” I know there are still challenges to overcome, but I am confident in the strength of the UK economy. “
Total exports of goods, excluding precious metals, fell by 2.2% in June, driven by a 5.6% drop in exports to non-EU countries, mainly due to the decline in medicinal and pharmaceutical products and automobiles.
While the delta variant propagation The virus has cast doubt on when workers can return to offices, shops and restaurants were open during June and enjoyed another boost in late July, when most of the remaining restrictions were lifted.
The Prime Minister’s Decision Boris Johnson Removing those restrictions left companies scrambling for staff, which increased wages along with the costs of goods and services. That has the BoE concerned about rising inflation.
Officials confirmed last week that it is problikely to tighten monetary policy in the next three years, undoing a decade-long stimulus program that helped the economy weather the financial crisis, Brexit, and Covid-19. They estimated that inflation could peak at 4% this year, double the targets.
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