UK records 0.2 percent growth in Q2, showing signs of improvement

Britain has recorded a growth rate of 0.2 percent in the second quarter, indicating an improvement compared to the first quarter, driven by industrial activity, declining material prices, and a boost from the hotel and restaurant sector, according to the Office for National Statistics on Friday.

In the first quarter, the Gross Domestic Product (GDP) grew by 0.1 percent.

In June, the activity rebounded (+0.5 percent) faster than economists had anticipated compared to May (-0.1 percent), which had an exceptional holiday due to the coronation of King Charles III, as stated by the Office for National Statistics. The growth was 0.2 percent in April.

Daren Morgan, Director of Economic Data at the Office for National Statistics, mentioned that the manufacturing sector witnessed a strong month, particularly in the automobile and pharmaceutical industries.

The construction sector also benefited from strong activity, as did the hotel and restaurant sector, benefiting from warm weather in June.

Chancellor of the Exchequer, Jeremy Hunt, said that "the measures we are taking to combat inflation are beginning to bear fruit," adding that "the Bank of England now expects us to avoid a recession."

The UK has been grappling with a cost of living crisis for months, with inflation rising by 7.9 percent in June, the highest among the Group of Seven (G7) countries.

The research center "Capital Economics" stated that "the UK remains the only G7 country where the main measure of GDP has not yet recovered to its pre-COVID peak level."

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFP