(ONS) UK gross domestic product expanded by 5.5% in the second quarter of 2021, up from a prior estimate of 4.8% increase following the lifting of Covid-19 restrictions.
Fig: UK GDP (Q4 2019- Q2 2021)
Wholesale and retail trade were the largest contributors to the GDP increase. Robust accommodation and food service, education, social work activities, and human health also led to the increase.
Household consumption contributed 4.0 percentage points to the increase in the GDP. Household spending rose by 7.9%, while the savings ratio dropped to 11.7% in the second quarter from 18.45 in the first.
Net borrowing position of the UK with the rest of the world dropped to 1.5% of GDP, compared to 1.7% in the first quarter.
UK GDP is now 3.3% below the pre-pandemic level, a better estimate than the previously projected 4.4% below.
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