UK economy grows by 4.8% but misses forecasts

• Posted on August 12, 2021August 12, 2021
• by Nana Kwesi Coomson
• Comment

UK economic growth rose by 4.8% between April and June, according to official figures, falling short of Bank of England forecasts.

Data from the Office for National Statistics showed that the expansion in gross domestic product (GDP)was uneven over the second quarter. 

The Bank of England said it expected GDP to rise by 5% over the period when most of the economy reopened.

Accommodation and food services surged, as did retail, helped by Euro 2020.

The growth in activity, fuelled by the easing of social distancing restrictions, was strongest in sectors hard-hit under lockdowns such as wholesale and retail, hotels and restaurants. 

The ONS also said education output jumped during the second quarter as schools reopened.

However, vehicle production tumbled by 16.7%, which the ONS said was because of “a global semiconductor shortage”.

The UK economy is now 4.4% smaller than it was before the pandemic. 

The ONS said that growth expanded by 1% in June, but revised down the figure for May from 0.8% to 0.6%. 

The growth was in line with economists’ average forecast, but slightly less than the Bank of England anticipated.

At the end of the quarter in June, the monthly growth is estimated at 1%, slightly more than most economists expected. 

-BBC