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BoE warns recent COVID-19 case increases could hold back economy

BoE warns recent COVID-19 case increases could hold back economy

Business
Britain's economy is "less weak" than previously expected but a recent rise in COVID-19 cases could take its toll on activity, the Bank of England has said.It now sees GDP being 7% smaller in the current quarter than it was prior to the pandemic - not as bad as it had previously feared. But policymakers also turned their attention to the uptick in coronavirus case numbers, as figures this week showed daily numbers had reached their highest level since May. ...
UK economy still 11.7% below pre-pandemic level in July – ONS

UK economy still 11.7% below pre-pandemic level in July – ONS

Business
The economy remained 11.7% below its coronavirus pandemic peak in July as the UK emerges from its sharpest recession on record, official figures show.The Office for National Statistics (ONS) reported gross domestic product (GDP) grew by 6.6% in the month as more parts of the economy awakened from the enforced hibernation of the COVID-19 lockdown. The deep sleep for activity sparked the largest recession in UK history in the second quarter of the year - a slump of 20.4% - driven by the first full month of COVID-19 restrictions in April. Month-on-month growth was recorded in May and in June.ONS director of economic statistics Darren Morgan said of July's growth: "While it has continued steadily on the path towards recovery, the UK economy still has to make up nearly...
UK economy continues recovery in July

UK economy continues recovery in July

Business
The UK economy grew by 6.6% in July, according to official figures, but output remains far below pre-pandemic levels.It is the third month in a row that the economy has expanded. But the Office for National Statistics (ONS) said that the UK "has still only recovered just over half of the lost output caused by the coronavirus".Hairdressers, pubs and restaurants contributed to growth after companies were allowed to reopen in July.However, the UK's economy is still 11.7% smaller than it was in February and growth in July was slower than the 8.7% expansion seen in June.Thomas Pugh, UK economist at Capital Economics, said the reopening of restaurants and pubs meant the accommodation and food services sector "rose by a whopping 140.8%"...

How China is preparing its economy for a future where the U.S. isn’t the center of global demand

Finance
An employee works on the production line of lithium battery at a factory of Tianneng Battery Group Co., Ltd on July 20, 2020 in Changxing County, Zhejiang Province of China.Tan Yunfeng | Visual China Group | Getty ImagesChina will likely become the world's largest economy in a few years and it is preparing itself for major shifts in international trade.  In a world rocked by the coronavirus pandemic and tensions with the U.S., the Chinese government has come out with yet another batch of policy terms to bolster its own economy, this time under the vague umbrella of "dual circulation." The phrase refers broadly to two circles of economic activity — internal and external — with greater emphasis than before on business at home.The jury is out on whether "dual cir
UK economy rebounds more slowly than expected

UK economy rebounds more slowly than expected

Business
The UK's economy rebounded more slowly than expected in May, growing just 1.8% from the previous month, as the gradual easing of lockdown had a modest impact.Manufacturing and house building showed signs of recovery in May as some firms saw staff return to work. But the Office for National Statistics said the economy was "in the doldrums".As a result of big contractions in previous months, the UK economy is now 24.5% smaller than it was in February, the ONS added.What do the experts make of the latest figures?The return to economic growth in May was described as "disappointing" by economists, who had expected an expansion of 5% or more. UK 'faces tax rises or spending cuts' What is a recession? The increase came after a fall of 6.9% in March and a record ...