The British economy remained below its pre-pandemic peak, according to data published on Friday, which highlighted the challenge facing new Prime Minister Liz Truss.
The National Bureau of Statistics said economic output unexpectedly rose by 0.2% between April and June, up from a previous reading of a contraction of 0.1%, meaning the British economy had not yet fallen into a slump. recession.
But the agency revised its estimate for the UK’s recovery from the Covid-19 pandemic downwards, reflecting a bigger hit to the economy than previously thought in 2020, when health lockdowns closed businesses across the country.
According to the agency, gross domestic product in the second quarter remained 0.2% below where it was at the end of 2019, a cut from its previous estimate of 0.6%.
“Despite the better news about the performance of the economy in the second quarter, the big picture is that it is in worse shape than we previously thought,” said Paul Dales, economist at Capital Economics.
“And that’s before the full brunt of rising inflation and the jump in borrowing costs has been felt.”
Britain’s new finance minister, Kwasi Kwarteng, last week published an economic plan that he said would spur growth through tax cuts.
But investors responded by selling the pound and British government bonds.
Source: CNN Brasil
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