Economy

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 seeks to recover from a sharp downturn caused by corona virus-induced locking operations.

Estimated growth in July GDP (GDP) Economists voted by Reuters expect a monthly expansion of 6.7%, following growth of 8.7% in June and 2.4% in May, following 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 of the GDP lost since the outbreak,” Darren Morgan, director of ONS economic statistics, said in a statement on Friday.

The UK GDP in July 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 slower than in 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 is likely to be the last of the major phases of the process and will not achieve a full recovery until early 2022, which is why we expect the Bank of England to further expand QE (size easing) to a total of 250 250 billion,” Buck planned.

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 to 140.8% per month in July, contributing to a 6.1% expansion in total service output.

Thelma Binder

"Explorer. Devoted travel specialist. Web expert. Organizer. Social media geek. Coffee enthusiast. Extreme troublemaker. Food trailblazer. Total bacon buff."

Related Articles

Leave a Reply

Your email address will not be published.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

Back to top button
Close
Close