The United Kingdom’s economy grew by 2.1% in August compared to the previous month. The recovery after the historic blow of the COVID-19 pandemic this spring is therefore disappointing, .
The UK National Statistical Office points out that the UK’s gross domestic product (GDP) is still 9.2% below the February 2020 level. That month is seen as the last month before lockdown measures at home and abroad caused the strongest economic contraction in the UK ever measured.
Economists expected an average increase in GDP of 4.6% in August compared to July. The disappointing growth rate is additional acid for the British government, as many restrictive measures against the virus were relaxed during the summer months. At the moment, as in many other countries, more restrictions have been introduced, which is the worst fear for economic development this autumn.
In the second quarter of 2020, the British economy shrank by 20%. This made it one of the most affected economies of all the rich countries by the pandemic. In addition to the coronavirus, there is a new risk at the end of this year. The transitional phase will then begin after the Brexit, while negotiations on a new trade agreement with the European Union after 31 December will hardly be successful. If there is no agreement, there will be a lot of customs duties on reciprocal trade.