For the third month in a row GDP has gone up and many see this as the start of the UK economy recovering from the impact of Covid. In July, GDP went up up 6.6%.
For the third month in a row GDP has gone up and many see this as the start of the UK economy recovering from the impact of Covid. In July, GDP went up up 6.6%.
UK economy recovering from Covid: GDP rises in July
GDP hit a record low in April but it is has risen 18.6% since then. That said, this figure is still 11.7% below the pre-lockdown figures from February this year. Today’s announcement of GDP growth of 6.6% in July follows on from growth of 2.4% in May and 8.7% in June.
There was growth in all economic sectors in July including the hard-hit services sector. Rishi Sunak, the Chancellor of the Exchequer, has not built up today’s figures to be a major victory, saying that although it is clear progress he has to acknowledge the damage to livelihoods that had been done previously.
Sunak added more details on his plans saying: “We’re helping people return to work with a £1,000 retention bonus for jobs brought back from furlough. And we are creating new roles for young people with our Kickstart scheme, introducing incentives for training and apprenticeships, and supporting and protecting jobs in the tourism and hospitality sectors through our VAT cut and last month’s Eat Out to Help Out scheme.”
Prominent economists have stressed the importance of a successor to the Job Retention scheme, a good trade deal with the EU and proper management of any second wave of Covid in order to take further steps towards economic stability.
READ MORE:
