London Daily

Focus on the big picture.
Saturday, Apr 04, 2026

UK economic recovery slows as more COVID-19 curbs lifted

UK economic recovery slows as more COVID-19 curbs lifted

Following Friday's data, British finance minister Rishi Sunak said it was "great to see people back out and about thanks to the success of the vaccine rollout, and to see that reflected in" the GDP update.

Britain's economy grew for a fourth month running in May on further easing of lockdown measures but the rate of expansion slowed more than expected, official data showed Friday.

Gross domestic product grew by 0.8 percent in May as restaurants and pubs welcomed customers back indoors for the first time since the end of last year, the Office for National Statistics (ONS) said in a statement.

But that was down on April's 2.0-percent growth rate. The analysts' consensus had been for a slowdown to 1.5-percent growth in May.

"The economy grew for the fourth consecutive month, albeit at a slower pace than seen recently... (and) remains around three percent below its pre-pandemic peak," said Jonathan Athow, deputy national statistician for economic statistics at the ONS.

"Pubs and restaurants, who were again able to welcome indoor guests, were responsible for the vast majority of the growth seen in May.

"Hotels also saw a marked recovery as restrictions lifted," Athow added.

Offsetting a 37-percent surge in accommodation and food services activity was a 16.5-percent drop in production of transport equipment.

This was owing to the global shortage in semiconductors hitting car manufacturing, the ONS said.

In the three months to May, total UK output grew by 3.6 percent thanks also to strong retail sales, the ONS said.

Separate data showed UK exports rising in May, while imports dipped.

"May's weaker-than-expected increase in GDP underlines that the recovery to its pre-Covid levels will be drawn out," forecast Samuel Tombs, chief UK economist at Pantheon Macroeconomics.

He pointed to a "fading of some initial enthusiasm when businesses reopened.

"Rising Covid-19 infections also appear to be prompting some people to work from home again and to visit shops and services venues less frequently."

Overall, the global economy has surpassed its pre-pandemic peak, data survey firm IHS Markit said at the end of June.

Following Friday's data, British finance minister Rishi Sunak said it was "great to see people back out and about thanks to the success of the vaccine rollout, and to see that reflected in" the GDP update.

More lockdown easing


The government on Thursday said that UK residents returning to England from the United States and most European countries will soon no longer have to self-quarantine if fully vaccinated against Covid-19.

The quarantine change will start from July 19, when the government hopes to remove virtually all coronavirus restrictions in England.

Additionally, the government is expected to announce a plan in the next fortnight allowing entry to fully-vaccinated foreigners and British expatriates.

Broader plans to ease social distancing, mask-wearing and other virus curbs come despite a surge in infections of the highly contagious Delta variant.

Prime Minister Boris Johnson argues that a successful UK vaccination campaign -- which has seen nearly two-thirds of adults fully jabbed -- has weakened the link between infections and hospitalisations and deaths.

However a group of more than 120 scientists and medical professionals have slammed the unlocking plans, calling them a "dangerous and unethical experiment".

In a letter to The Lancet medical journal, they cautioned that the move could leave thousands with long-term illness owing to so-called long Covid.

Britain has one of the highest death tolls in Europe, with more than 128,000 fatalities.

Newsletter

Related Articles

0:00
0:00
Close
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
×