Virus-hit UK economy continues to recover in July 2020

The British economy continued to recover in July, expanding by 6.6%, a slower pace of growth than in June when the country emerged from its virus lockdown, official data showed on Friday, September 11.

Gross domestic product (GDP) had surged by 8.7% in June and by 2.4% in May, following a record contraction of 20% in April, the Office for National Statistics (ONS) said in a statement.

“While it has continued steadily on the path towards recovery, the UK economy still has to make up nearly half of the GDP lost since the start of the pandemic,” said ONS Director of Economic Statistics Darren Morgan.

He said that in July, “education grew strongly, as some children returned to school, while pubs, campsites, and hairdressers all saw notable improvements.”

Morgan added that car sales exceeded pre-crisis levels for the first time as showrooms reopened.

“All areas of manufacturing, particularly distillers and carmakers, saw improvements, while housebuilding also continued to recover,” he said. 

“However, both production and construction remain well below previous levels.”

Britain entered lockdown in late March for around 3 months, forcing the nation into its deepest recession on record.

On Wednesday, September 9, the government tightened coronavirus restrictions owing to a sharp rise in cases, banning social gatherings of more than 6 people and making contact tracing mandatory in pubs and other venues.

Prime Minister Boris Johnson said the new “rule of 6” in England would replace a raft of regulations he admitted were “complicated and confusing,” and help reverse the upward trend of infections.

Britain has been hard hit by the coronavirus, recording more than 41,500 deaths among people who tested positive – the highest rate in Europe, and one of the highest in the world. – Rappler.com