German economy’s nightmare as UK growth overtakes EU’s biggest power THREE times | World | New


The UK economy grew 4.8% in the second quarter of 2021 as lockdowns were lifted, bringing people back to pubs, the Office for National Statistics said. The figure is three times that of Germany and four times that of France.

Sam Fuller, Director of Financial Markets Online, said: “The pace of the UK’s vaccination program – which has successfully delivered two Covid vaccines to the arms of 75% of the adult population – is an important factor and may explain why UK growth has soared. triple that of Germany and four times that of its European neighbor France.

Britain’s gross domestic product (GDP) rose another 1% in June, creating five consecutive months of growth.

The economy also accelerated from 0.6% growth in May, the ONS said.

Lockdown restrictions slowly eased for much of the quarter.

Outdoor dining reopened in April, the first month included in quarterly data, and further restrictions were lifted in May.

Another major contributor to growth has been general surgeries across the country.

The number of people visiting their doctors for complaints unrelated to Covid increased, increasing consumption of health services by 5.1% in the second quarter.

This was also helped by government spending for Test and Trace and the vaccination program, the ONS said.

READ MORE: UK on track to reach multibillion post-Brexit CPTTP deal by 2022

Economists at Pantheon Macroeconomics expected GDP growth of 0.6% in June and 4.7% in the quarter.

The Bank of England, meanwhile, had forecast growth of 5% for the quarter.

However, the surge in the COVID-19 Delta variant and the rise in the number of people self-isolating has undermined some of that growth.

Nevertheless, the data mark a major improvement compared to the first months of the year.

In the first quarter, the economy contracted 1.6% as it battled protracted lockdowns.

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This data covered the period up to the end of March and therefore did not include the reopening of the outdoor hotel business in April and the indoor hospitality one month later.

Chancellor Rishi Sunak said: “I know there are still challenges to overcome, but I am confident in the strength of the UK economy and the resilience of the British people.”

The ONS also reported that the UK’s trade deficit, excluding precious metals, increased from £ 3.6bn to £ 5.2bn in the second quarter of the year.

In June, exports to non-EU countries fell 5.6%, mainly due to lower sales of pharmaceuticals and cars to countries outside Europe.

Exports to EU countries rose 1.2% in June, statisticians said.


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