Boris Johnson outlines his plans to reach net zero
The UK economy grew 4.8% in the second quarter of 2021 as lockdowns lifted, bringing people back to pubs, figures from the Office for National Statistics showed. The country’s gross domestic product (GDP) grew an additional one percent 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.
ONS deputy national statistician for economic statistics Jonathan Athow said: “GDP is still about two percentage points below its pre-pandemic peak.”
Economists at Pantheon Macroeconomics expected GDP growth of 0.6% in June and 4.7% in the quarter.
The news will come as a major boost for Prime Minister Boris Johnson and Chancellor Rishi Sunak, with 75% of Britons now completely trapped.
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Chancellor Rishi Sunak will be backed by the numbers
Johnson tweeted on Tuesday: ‘Our incredible vaccine rollout has now provided protection to 3/4 of UK adults.
âWe should be proud of this huge national achievement.
âIt is vital that those who have not been vaccinated reserve their vaccine to protect themselves, protect their loved ones and allow us to enjoy our freedoms safely.
Sam Fuller, Director of Financial Markets Online, commented: âThe 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 skyrocketed. triple that of Germany and four times that of its European neighbor France.
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Update at 9:06 am: Brexit Britain is the ‘leading tech revolution’ as report shows half of European investors in UK
Brexit Britain has overtaken the EU in a new report showing how the UK attracts nearly half of all education technology investment entering Europe.
The UK is said to be “leading the global technological revolution in education” as the country invests heavily in scientific tools to inspire the next generation.
Data released by the Digital Economy Council last year showed Britain’s industry to be one of the fastest growing in Europe, with a target of over Â£ 3.4 billion by the end of the year.
It comes from over 1,000 companies and startups exploring cutting-edge learning tools like augmented reality (AR) and virtual reality (VR) – as well as looking for the next big breakthrough.
Update at 8:32 am: Sunak optimistic about ONS figures
Assessing the current situation after the release of today’s ONS figures, Chancellor Rishi Sunak said: âI know there are still challenges to overcome, but I am confident in the strength of the British economy and the resilience of the British people. “
The ONS also reported that the UK’s trade deficit, excluding precious metals, increased from Â£ 3.6bn to Â£ 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.
Update at 8:26 am: EU ready to issue final Brexit ultimatum on border line as ‘worn out patience’
The EU appears to be preparing a final ultimatum to the UK as the bloc’s patience “runs out” over a command document to renegotiate the Northern Ireland protocol, a senior MEP said.
Lord Frost called for significant changes to the Northern Ireland Protocol, part of the deal he negotiated, as he said “we cannot continue as we are”.
Negotiations are underway to resolve post-Brexit trade concerns with the Brexit minister who presented the proposals to the House of Lords last month.
But Ireland’s Fine Gael MEP says UK plans would amount to a renegotiation of around half of the protocol, which he called “unacceptable” due to the removal of some EU authorities in Northern Ireland.
Lord David Frost is the UK Brexit Minister
Update at 8:12 am: the economy is like a “house of cards”, warns the economist
Despite positive data from the Office for National Statistics, the UK economy remains like a “house of cards”, Simon Lister, an IFA for financial comparison site InvestingReviews.co.uk, cautioned.
Mr Lister said: âAlthough there are obvious areas of weakness in the economy, particularly in construction, the service sector experienced a dramatic change in the second quarter. Even then, the number was lower than the Bank of England forecast.
“There are definitely some bright spots to be taken from this data, but the economy remains as delicate as a house of cards.”
He added: âAs the economy opened up and restrictions were relaxed, there would still be a spring in production, but with the end of the holidays looming and inflation rising sharply, that could happen. prove a dead cat bounce.
“The next two quarters will tell us a lot more about the economy than the previous two quarters, as the holiday stabilizers that kept the economy standing are removed.”
Update at 8:02 am: “Brexit success from day one!” Lord Moylan welcomes visa-free travel for musicians across the EU
Lord Moylan hailed the success of Brexit and pointed out that visa-free travel for musicians to 19 EU countries was one of the many positive outcomes.
The Department for Digital Culture, Media and Sport (DCMS) recently announced that UK musicians will be able to tour 19 EU countries visa-free.
A statement from DCMS said: âWe want the fantastic artists and other creative professionals of the UK to be able to tour internationally with ease.
âWe are now actively engaging with other Member States that do not allow visas and allow free visits. “
The peer said: ‘Brexit has been a success from day one because it gave us back our democracy and allowed us to take back control of our own affairs.
âIt is encouraging that a growing number of EU countries have now reached an agreement to allow UK musicians to tour. “
Update at 7:59 am: “Zero to heroes in an hour”
Also commenting, Sam Fuller, Director of Financial Markets Online, wrote: âLarge swathes of the UK economy have gone from zero to hero in just one quarter.
âThe contrast between the blocked first three months of the year and the second quarter was largely predicted but is nonetheless remarkable.
He added: âImportantly, growth occurred throughout the quarter, with the three months of GDP surging as pandemic restrictions eased and more sectors of the economy came back online.
âMost reassuring is the prominent role of UK consumers in the recovery. As the UK government spent huge sums to support the economy during the darker days of the pandemic, second quarter growth was widespread and largely demand-driven, with real household spending surging impressively 7.3%.
7:40 am update: “Considerable investment demand”
Commenting on the quarterly GDP increase of 4.8%, Ian Warwick, Managing Partner of Deepbridge Capital, said: âAlthough expected with the reopening of the economy, today’s GDP data is the latest sign of positive growth for the economy.
âAs we continue to focus on economic recovery, it remains extremely important that large-scale businesses, especially in high-growth sectors such as digital technologies and life sciences, are supported; because they will be at the very heart of economic growth as we create an economy worthy of the 21st century.
âGovernment initiatives like the Enterprise Investment Scheme (EIS) have never been more important in helping entrepreneurs and innovators find the financing they need, while providing private investors with tax incentives to develop portfolios UK-backed private equity fund.
âWith our EIS funds reaching record funding levels in 2020/21, it is evident that there is considerable demand from investors and financial advisors to invest in UK start-ups which we believe will be at the vanguard of our economic recovery. “