UK economy grew by 4.8 per cent in second quarter of 2021 - ONS

12 August 2021, 07:20 | Updated: 12 August 2021, 08:04

The UK economy grew by 4.8 per cent in the second quarter of 2021
The UK economy grew by 4.8 per cent in the second quarter of 2021. Picture: Alamy
Nick Hardinges

By Nick Hardinges

The UK economy grew by 4.8 per cent in the second quarter of 2021 as lockdown restrictions were eased, the Office for National Statistics (ONS) has said.

GDP increased by a further one per cent in June, creating five consecutive months of growth, while the economy also sped up from 0.6 per cent growth in May.

Lockdown restrictions slowly eased through much of the quarter, with outdoor dining opening again in April - the first month the quarterly data includes - and further restrictions lifting in May.

Another major contributor to the growth was GP surgeries across the country.

The number of people visiting their doctors for non-Covid complaints rose, increasing the consumption of health services by 5.1 per cent in the second quarter.

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This was also helped by government spending on Test and Trace and the vaccination programme, the ONS explained.

Deputy national statistician for economic statistics Jonathan Athow said: "The UK economy has continued to rebound strongly, with hospitality benefiting from the first full month of indoor dining, while spending on advertising was boosted by the reopening of many services.

"Health services also showed growth, with many more people visiting their GP.

"GDP is still around two percentage points below its pre-pandemic peak."

Energy usage dropped as summer arrived in the UK, the ONS said.

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Economists at Pantheon Macroeconomics had expected GDP to grow by 0.6 per cent in June, and 4.7 per cent across the quarter. Meanwhile, the Bank of England predicted growth of 5 per cent across the quarter.

However, the surge of the Covid-19 Delta variant and the boom in the number of people self-isolating undermined some of this growth.

Nevertheless, the data marks a major improvement from the first months of the year.

In the first quarter, the economy contracted by 1.6 per cent as it battled with prolonged lockdowns.

That data covered the period to the end of March, so did not include the reopening of outdoor hospitality in April and indoor hospitality a month later.

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

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