London Daily

Focus on the big picture.
Saturday, May 31, 2025

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
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×