UK GDP up 4.8 per cent in second quarter : CityAM
The UK economy grew at a rate of 4.8 per cent in the second quarter, data from the ONS said today, as the bounce back from the coronavirus pandemic continues.
As a result, GDP is now 4.4 per cent below where it was in the last quarter of 2019, before Covid-19 struck.
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The figures fall just short of the Bank of England’s prediction that GDP would expand by more than 5.0 per cent for the second period, which saw the UK’s economy reopened as coronavirus restrictions were lifted.
However, the ONS said that the UK’s GDP growth for the quarter was faster than those recorded by the US, France, Germany, and Spain.
In output terms, the largest contributors to this increase were from wholesale and retail trade, accommodation and food service activities, and education, the ONS said.
For June, the rate of growth was 1.0 per cent, faster than the 0.8 per cent predicted by economists.
However, the ONS revised back its previous estimates for May’s growth from 0.8 per cent to 0.6 per cent.
Yael Selfin, chief economist at KPMG, said: “Second quarter GDP showed a strong 4.8 per cent increase compared to the first quarter of this year and an eye-popping 22.2 per cent growth compared to the second quarter of 2020, showing the extent of the economic recovery from the shock of the pandemic. June’s GDP was just 2.2 per cent below the level in February 2020.
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But, she warned, there are still risks that could derail the recovery. “However, there are signs that ongoing issues with supply chains and staff shortages are slowing the pace of recovery, causing momentum to halt prematurely before the economy reaches pre-Covid levels”, she said.
More to follow.