LONDON, October 13 (Hfrance.fr) - The UK economy resumed growth in August after contracting for the first time in six months in July, keeping the bets intact of the financial market which the BEngland will start raising interest rates before the end of the year.
Gross domestic product has increased by 0, 4% in August - a shade below market expectations in an Hfrance.fr survey of economists - after it was revised down to show a 0.1% drop in July when staff absences linked to the Delta variant of COVID-19 peaked.
"The economy picked up in August, with bars, restaurants and festivals benefiting from the first full month without COVID-19 restrictions in England "said Darren Morgan, director of economic statistics at the Office for National Statistics.
financial markets changed little after the data.
The BoE appears to be on track as the big central bank firs t hike interest rates since the start of the pandemic. Financial markets bet onup to 0.25% by December, from its current all-time low of 0.1%.
After the latest official data, the Britain's economy is now less than 0.8% of its pre-pandemic size - a much smaller gap than when the latest monthly data was released thanks to revisions on the rise in output growth earlier in the year.
Britain 's economy shrank by 9.7 % in 2020, its largest joint decline in 300 years and corresponding to the annual decline of 1921, when the economy was still reeling from the cost of World War I.
The International Monetary Fund predicted on Tuesday that Britain was on track to have the fastest expansion of any country in the G7 wealthy group of countries, with growth of 6, 8% this year, although the disproportionate scale of theLast year's meltdown means it will take even longer to recover than most of its peers.
Britain grew rapidly in the first half of this year, when the rapid initial rollout of COVID-19 vaccines eased lockdown restrictions.
But this has slowed since mid-year due to a spate of Delta variant cases and global supply chain difficulties, which have been exacerbated by the new restrictions post-Brexit on trade and immigration.
Growth in the three months ending August slowed to its lowest since April at 2.9 %. Reports by David Milliken Edited by William Schomberg
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