According to preliminary assessments issued today on a monthly basis, the U.K. economy grew 6.6% in July, while the country's economy explores new ways in order to return from the fast decline prompted by the COVID-19 lockdown limitations.
July’s predicted increase in the UK's gross domestic product was generally on the same page with expectations, including economists surveyed by Reuters. It seems that the general expert's outlook is a monthly increase of approximately 6.7%, and accompanies the growth of 8.7% in June and 2.4% in May, following a record 20% fall last April.
Today's data from the Office for National Statistics revealed a drop of almost 12%% related to the same period in 2019. That is somewhat under expectations of an 11.4% decrease. Darren Morgan, ONS Director of Economic Statistics stated in a report today.
“While it has continued steadily on the path towards recovery, the UK economy still has to make up nearly half of the GDP lost since the start of the pandemic.”
U.K. GDP in July moved 18.6% higher than its April 2020 low, however itbsettled 11.7% under the pre-COVID-19 levels seen last February.
The U.K. economist at Capital Economics Thomas Pugh stated that, while July’s increase relaxed slightly from the previous month, it nevertheless showed that the sharp negative growth rate of GDP in the second quarter will be accompanied by a record-breaking positive growth rate in the third. U.K. GDP decreased by 20.4% in the second quarter of this year. Pugh projected.
“However, July was probably the last of the big step ups in activity and a full recovery probably won’t be achieved until early 2022, which is why we think the Bank of England will yet expand QE (quantitative easing) by a further £250 billion in total”.
U.K’s rise from lockdown actions and the resumption of pubs and restaurants in recent months indicated that activity in the accommodation and food services area grew 140.8% month-on-month in July, boosting total services output to a 6.1% expansion.
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U.K grows its economy 6.6%
Market Trends - 11/09/2020