Sunak says today’s figures show that UK economy is on the mend
UK GDP grew by 4.8% between April and June, it was revealed on Thursday, as most businesses are at least beginning to find their feet again as lockdown restrictions have been eased.
The Office for National Statistics showed that the expansion of the UK economy came about thanks to retail, restaurants and the hotels sector.
The official GDP figure did, however, fail to meet the Bank of England‘s expectations of 5%.
Compared to before the pandemic, the UK economy is now 4.4% smaller.
Commenting on UK GDP showing a positive uptick and an encouraging economic outlook, Douglas Grant, Director of Conister, part of AIM listed Manx Financial Group, said: “Today’s UK GDP data shows a positive uptick quarter on quarter and provides a more encouraging outlook for the UK economy going forward. “
However, the plight of UK small businesses and current default levels caused by the ongoing impact of the pandemic could be of real concern.
“We must acknowledge that the UK’s business debt burden has ballooned to unprecedented levels”, said Grant “and “unfortunately this has already created a relentless flow of weak zombie-like companies falling off a loan default cliff.”
Danni Hewson, AJ Bell financial analyst, says that consumers have played their part in bringing the UK economy back to life: “The fact that pubs and restaurants were able to offer indoor service for the full month of June helped to drive GDP up.”
“People have embraced the opportunity to get out and about and consumer facing services returned to just slightly below pre-pandemic levels, with children back in the classroom and patients happy to return for a face-to-face chat with their GPs.”
Chancellor Rishi Sunak said: “Today’s figures show that our economy is on the mend, showing strong signs of recovery.
“I know there are still challenges to overcome, but I feel confident in the strength of the UK economy and the resilience of the British people.”
