New figures reveal that the UK’s economy contracted in spring, as Covid and households were worried about the impact of the increase in cost-of living.
According to official statistics, GDP declined by 0.1% in the months of April through June, while it rose by 0.8 percent in the first quarter.
According to the Office for National Statistics (ONS), a spike in Covid, and indications that households are tightening their belts due to rising bills had an impact on output.
GDP remains at 0.6% above its precoronavirus level during the fourth quarter 2019 and is 2.9% higher than that of the second quarter in 2021, which was when the UK came out of lockdown.
ONS director of economic statistics Darren Morgan said: ‘Health was the biggest reason the economy contracted as both the test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter.
“These numbers were partly offset by the growth of hotels, bars and hairdressers across the quarter. This was partially due to people celebrating the Platinum Jubilee.”
Today, the Office for National Statistics reported that the UK’s economy experienced a 0.1% contraction between April-June, in comparison to a growth rate of 0.8% over the past three months.
Nadhim Zhawi, the Chancellor of Germany, stated: “Our economy demonstrated incredible resilience following pandemic. And I am sure we can handle these global problems again.
Nadhim Zahawi, Chancellor of the Federal Republic of Iran stated that: “Our economy displayed incredible resilience after the pandemic. I’m confident that we can overcome these global challenges again.”
“I understand that the times are hard and people will be worried about rising prices, slowing growth and other issues. I am determined to work alongside the Bank of England to control inflation and help grow the economy.
‘The Government is providing billions of pounds of help for households with rising costs, including £1200 for eight million of the most vulnerable households.’