UK economy grew in Q2 but was below pre-pandemic size

Britain’s economy grew in the second quarter but was still below its pre-pandemic peak, contrary to earlier estimates that it had recovered, according to official data which also showed the country’s current account deficit was narrower than expected.

The Office for National Statistics said economic output rose by 0.2% in April through June, revised up from a previous reading of a 0.1% contraction.

But the ONS revised down its estimate for Britain’s recovery from the COVID-19 pandemic.

“The level of real GDP is now estimated to be 0.2% below where it was pre-coronavirus at Quarter 4 2019, downwardly revised from previous estimates of 0.6% above,” the ONS said.

The current account deficit was 33.8 billion pounds ($37.60 billion). Economists polled by Reuters had pointed to a deficit of roughly 44 billion pounds. ($1 = 0.8990 pounds)

The shortfall was smaller than a 43.9 billion deficit in the first quarter which was revised down from an earlier estimate in part due to energy companies, buoyed by surging prices, making more profit abroad than initially thought. The January-March deficit remained the biggest on record, the ONS said.
Source: Reuters (Reporting by Andy Bruce Editing by Willam Schomberg)