UK economy extends recovery from COVID crash
Monday, 09 14 2020, Category: Economy, Country: United Kingdom
Britain’s economy recovered half of its COVID-19 crash by the end of July, helped by pubs and restaurants reopening from lockdown, but the bounce-back is expected to slow as job losses mount and Brexit tensions rise.
After shrinking by a record 20% in the second quarter, output expanded by 6.6% in July, slower than June’s monthly rate, the Office for National Statistics (ONS) said on Friday.
Economists polled by Reuters had expected growth of 6.7%.
Finance minister Rishi Sunak welcomed the figures but added that people were rightly worried about the coming months.
The economy remains 12% smaller than its level in February, before the pandemic hit Britain.
“July was probably the last of the big step-ups in activity and a full recovery probably won’t be achieved until early 2022,” Thomas Pugh, an economist with Capital Economics, said.