London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

Britain's economy on course for rapid recovery from coronavirus crisis, predicts Bank of Engla

Chief economist Andy Haldane predicts a rapid recovery from the pandemic. He says consumer spending has helped UK claw back as much as half of losses. He insists ‘now is time to see economic glass as half full rather than half empty’

Britain's economy is on course for a rapid recovery from the coronavirus crisis, a senior Bank of England official predicts today.

Chief economist Andy Haldane says strong consumer spending has already helped the UK claw back as much as half of the losses triggered by the pandemic.

He insists ‘now is the time to see the economic glass as half full rather than half empty’ – as official statistics reveal a sharp increase in the number of white collar workers returning to their offices.

Responding to the figures, Chancellor Rishi Sunak said: ‘Our economy has been hit hard by the virus, but the statistics out today show promise of Britain bouncing back.

‘The recovery won’t be easy but if we all play our part, either by going back to work in our offices or enjoying a meal out, we can overcome this together and come out stronger than before.’

Writing in the Daily Mail, Mr Haldane says the economy is expected to expand by more than a fifth in the second half of the year, which would be ‘by far the fastest rise’ since quarterly records began.

He says: ‘The foundations for an economic recovery – a rapid one – are already in place, hiding in plain sight. Economic activity in the UK is not falling like stone, in fact it has now been rising for more than three months, sooner than anyone expected. It has also recovered far faster than anyone expected.’

His upbeat intervention comes after it was confirmed on Wednesday that Britain has plunged into recession, with GDP falling by a record 20.4 per cent in the second quarter of this year.

But official figures also revealed that after collapsing in April – the first full month of lockdown – the economy expanded by 2.4 per cent in May and 8.7 per cent in June.

An Office for National Statistics report yesterday suggested almost half of Britons commuted to work last week as pleas by Boris Johnson to return to the office appeared to be making an impact.

Under guidance, which came into effect at the beginning of the month, employers were urged to encourage white collar staff to go back to the office if it is safe to do so. Previously the advice was to work from home if possible.

The ONS report showed 48 per cent of people commuted to work last week, up from just 29 per cent towards the end of May.

It also showed that 23 per cent worked solely from home, down from a peak of 38 per cent in mid-June. And last week just 3 per cent of workers said they were furloughed, down from 15 per cent in May.


A healthy dose of optimism can save jobs, writes Bank of England chief economist ANDY HALDANE

After a week of relentlessly grim forecasts about the economic calamity we’re hurtling towards, could there possibly be a glimmer of light in all the gloom?

In today’s Mail, Bank of England chief economist Andy Haldane makes no bones about the scale of the challenges ahead – or the pain they will cause.

The Bank predicts the collapse in economic activity will push unemployment up to 2.5million by the end of the year (a conservative estimate), with the young, poor and least-skilled being worst affected.

This is far more than mere numbers. Every job lost means a life thrown into chaos, a person or family worrying about how to pay the bills.

But for all the anxiety, Mr Haldane struck a note of cautious optimism. The foundations for recovery are already there, he said, ‘hiding in plain sight’.

Far from continuing to plummet, GDP has been rising at roughly 1 per cent a WEEK for the past three months and the UK has already recovered half its Covid losses.

Car sales are back to pre-virus levels, and while the High Street is still deep in crisis, online purchases have risen by 70 per cent and spending on electrical goods, DIY and takeaways is soaring.

Mr Haldane expects national income to rebound by 20 per cent in the second half of this year. And though unemployment will continue to rise in the short-term, he believes that with continued Bank and Government support, the worst of this recession will be over quickly.

However, there is a giant obstacle on the road back to prosperity, and that is fear, which can be as contagious and damaging as Covid itself.

The health risk from the virus is tumbling, with death rates down 95 per cent and local spikes being well contained by local measures.

Yet Britain has been slower to get back to work than the rest of Europe. True, nearly 50 per cent of people travelled into work last week. But that’s still too few.

With face masks and distancing giving extra confidence on public transport and the imminent return of schools allowing parents to resume their jobs, we must get back to a semblance of normality.

Or as Mr Haldane put it, ‘generate a virtuous circle of spending, jobs and incomes’.

The Civil Service and big corporations should be giving a lead, yet sadly they seem in no hurry to resume business as usual. Some are happy for their employees to work from home until well into next year. This institutional indolence has to stop.

The Bank and Chancellor Rishi Sunak can pave the way to getting this country back on track before the economic damage of Covid becomes irreversible. But the rest is up to all of us. Workers of Britain: Your country needs you.

Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×