The British economy grew by a surprising 0.2 percent in the second quarter compared to the previous three months, helped mainly by strong growth in June. Analysts had expected stagnation. But the UK is still lagging behind other major economies.
Strong June
The economy grew 0.5 percent month-on-month in June, while analysts in a Reuters poll had estimated 0.2 percent growth for the month. The second-quarter figure is a slight improvement on the first quarter, when the economy grew 0.1 percent.
“The measures we are taking to fight inflation are starting to take effect, which means we are laying the strong foundations needed to grow the economy,” said Chancellor of the Exchequer Jeremy Hunt.
Economy below 2019 levels
While the UK has so far avoided recession, unlike the eurozone, the figures confirm its relatively poor performance since the outbreak of the covid-19 pandemic. The British economy is 0.2 per cent below its end-2019 level for the second quarter. By contrast, the German economy is 0.2 per cent higher, the French economy is 1.7 per cent higher, the Italian economy is 2.2 per cent higher and the US economy is even 6.2 per cent higher.
The pound added about 0.2 percent to the dollar to $1.2706 after the release of today’s statistics. The euro lost 0.1 percent against the pound.
Source Czech Press Office
