The British economy keeps its nose above the surface

International Economy

Economy (TT-Bloomberg)

Negative growth was replaced by a positive contribution to GDP during the second quarter.

Revised statistics from the country's statistics agency show that the British economy grew by 0.2 per cent compared to the first quarter. Preliminary data showed earlier that GDP fell by 0.1 percent.

But the change is mostly due to revised older data. The UK's total output of goods and services, i.e. GDP, remains below pre-pandemic levels.

After the turmoil in British financial markets last week, following the new government's massive tax cuts package which was criticized by economists, the pound has now almost fully recovered. However, this is almost exclusively due to the fact that the Bank of England has supported the currency in recent days.