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- UK’s economy expected to show 5.3 percent growth in Q2 - NIESR
UK’s economy expected to show 5.3 percent growth in Q2 - NIESR
National
Institute of Economic and Social Research (NIESR) reported on Friday that it
expects the UK’s economy to expand 1.5 percent m-o-m in May and 0.9 percent
m-o-m in June, helped by the continuing reopening of the UK’s economy. In the second
quarter of 2021, GDP is now seen to show an expansion of around 5.3 percent,
which would represent the fastest quarterly growth rate since the summer of last year
and the initial recovery phase after the Covid-19 shock, NIESR added.
NIESR
also noted that the ONS statistics published this morning revealed the UK
economy rose 2.3 percent m-o-m in April, almost in line with what the institute
had forecast last month.
“Like
March, April was a month of rapid growth in services output, as anticipated,
driven by the re-opening of non-essential retail, outdoor hospitality and
near-full attendance in schools,” noted Rory Macqueen, NIESR’s Principal
Economist. “May will follow a similar pattern, as further restrictions are
lifted, as will June if the final step of the roadmap goes to plan. But falls
in construction and production, which were less affected by the 2021 lockdown,
remind us that our focus should now be on the prospects for the economy in the
second half of the year, after temporary re-opening effects have ceased to provide
strong monthly increases."
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