Blog


Market Update

Britain’s economy stumbled out of its coronavirus-induced slump in May, casting doubt on the chances of a rapid rebound and suggesting more government help to kickstart recovery may be on its way.

Gross domestic product rose 1.8% after lockdown restrictions were eased slightly, the Office for National Statistics said – a smaller rebound than any economist had forecast in a Reuters poll and following a record 20.3% contraction in April when curbs were tightest.

With activity in the services sector having failed to pick up as expected, Tuesday’s figures are likely to fuel doubts about whether Britain will enjoy a quick, ‘V’-shaped bounce back as lockdown curbs are lifted further.

“Today’s figures underline the scale of the challenge we face. I know people are worried about the security of their jobs and incomes,” finance minister Rishi Sunak said.

Last week Sunak announced an extra 30 billion pounds ($38 billion) of stimulus to limit the increase in unemployment.

Britain’s government first closed non-essential shops and other businesses to the public on March 23, shortly after ordering the closure of bars, restaurants and cinemas.

Over March and April economic output slumped by a record 25.9%, slightly more than previously thought, and output in May was 24.0% below its level a year earlier.

The International Monetary Fund forecast last month that Britain’s economy would shrink by more than 10% this year, a historic decline though a smaller one than it predicted for France or Italy.

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Currency Cloud Limited, Equals Connect Limited and Ebury Partners UK Limited. Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number: 900199. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Currencies 4 You Ltd is partnered with Ebury Partners UK Limited as its Programme Mananger. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the information commissioners office with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers