UK economy rebounds as Covid restrictions ease

20 August, 2021

As most businesses emerged from lockdown, the UK economy grew by 4.8% between April and June, according to official figures. Growth over this period contrasts with January to March, when the economy shrank by 1.6%.

Data from the Office for National Statistics (ONS) showed that the expansion in gross domestic product (GDP) was fuelled by retail, restaurants and hotels. Education also boosted the economy as schools reopened in the second quarter.

However, the growth figure was slightly below the 5% the Bank of England expected and the the UK economy is now 4.4% smaller than it was before the pandemic.

The main driver of growth was consumer spending, which rose by 7.3% over the quarter, ahead of expectations.

Capital Economics said it expected the economy to return to pre-Covid levels later this year.

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