IMAGE SOURCEGETTY IMAGESData from the Office for National Statistics showed that the expansion in gross domestic product (GDP) was fuelled by retail, restaurants and hotels. Education also boosted the economy as schools reopened in the second quarter. However, the figure was slightly below the 5% the Bank of England expected.
The UK economy is now 4.4% smaller than it was before the pandemic.Growth in the second quarter contrasts with the first three months of the year, when the economy shrank by 1.6% while Covid restrictions were still in place.
“But I’m not complacent. The economy and our public finances have experienced a significant shock. It is going to take us time to fully recover from that.”
Capital Economics said it expected the economy to return to pre-Covid levels later this year. “We are comfortable with our view that monthly GDP will return to its February 2020 pre-pandemic size by October and that the economy may yet surprise most forecasters by emerging from the pandemic without much scarring,” said senior UK economist Ruth Gregory.
In April, non-essential retailers reopened, as well as gyms, hairdressers and outdoor dining. In May, pubs, restaurants and cafes were allowed to serve customers indoors, while theatres, galleries and cinemas were allowed to open their doors.
The main driver of growth was consumer spending, which rose by 7.3% over the quarter, ahead of expectations.
Source: bbc.com
