The United Kingdom’s gross domestic product grew by an entire percentage point, which is 0.8 % more than what was predicted by economists, in June when the coronavirus pandamic necessary lockdown was eased.
The latest statistics imply that the UK economy is only 2.2 % smaller than before the series of Covid-19 lockdowns and related regulations came into effect. This, in turn, implies a sharp recovery from the worst recession that the country faced in three centuries. The Bank of England expects the lost output to return by the end of this year.
The information was provided on Thursday by Britain’s office for national statistics noting that the UK economic growth for the country is now at 4.8 % for the april and june , which is close to the 5 per cent prediction made by the Bank of England last week.
“I know there are still challenges to overcome, but I feel confident in the strength of the UK economy.” Statisticians quoted by the news agency, UK’s health services and a surgence in hospitality were the key driving factors behind the economic growth in June.
Education also surged during the quarter when schools reopened after the lockdowns rules were used.Since UK residents made frequent visits to general physicians, the health and social work sector became the largest contributor to the June growth.
Another reason is economic recovery is the massive financial support provided by the government. Total UK output remains 4.4 % below compared with before the Coronavirus pandemic, or the fourth quarter of 2019.
Hande Kucuk, the deputy director of the National Institute of Econmic & Social Research he said, “We expect growth to slow in the third quarter but still remain high by historical standards,”
The GDP fell by 1.6% in the first three months of the year, the office for national statistics noted, indicating that the economic rebound has plenty of challenges up ahead.Analysts also warn that strong price rises could force central banks to hike interest rates sooner than expected, hindering the recovery.