Status: 08/12/2021 10:41 am
After a weak start to the year, the British economy recovered strongly in the spring. In the second quarter, economic output rose by 4.8 percent quarter-on-quarter – especially due to the high domestic demand.
The UK economy grew strongly in the second quarter. Compared to the first three months of the year, the gross domestic product increased by 4.8 percent, announced the ONS statistics office on the basis of an initial estimate. Economists had expected a recovery on this scale. The German economy only managed an increase of 1.5 percent during this period.
Strong recovery in domestic demand
An important driver of growth was the easing in the catering and retail sectors thanks to the vaccination progress since mid-May. The health sector also made a disproportionate contribution to the recent recovery, as more patients went to see the doctor. Overall, according to the statistics office, private households spent 7.3 percent more money in a quarterly comparison. Industrial production and construction also increased significantly.
Despite the recovery, the gross domestic product of Europe’s second largest economy is still 4.4 percent below the pre-crisis level at the end of 2019. In terms of profit for the year, the corona restrictions had caused economic output on the island to shrink by 1.6 percent.
Government wants to catch up with burglary quickly
The historic slump in the British economy of almost ten percent last year, which was mainly due to the corona pandemic, but also to the consequences of Brexit, should be caught up again by the end of the year.
The Bank of England expects growth of around eight percent for the full year. At the beginning of the third quarter, the British government decided to further far-reaching easing of the corona measures.