The UK is on the road to recovery

By: Miguel A. Rodriguez

09:45, 14 September 2020

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In July, the UK economy expanded by 6.6%

According to the latest report from the UK Office for National Statistics, the pandemic's effects are starting to wear-off.

According to the Office's data, the country managed to recover slightly over half of the lost pandemic-induced output. The GDP figures came in at 6.6%, a tenth below the market consensus. The July numbers follow an 8.7% gain in June and a 2.4% in May. In April, the country reported a GDP contraction of 20%.

The increase reported for July was mostly driven by a 140.8% rise noticed in the accommodation and food sectors. The activity in these sectors is still 60.1% below the February level. The alcohol industry grew by 32.7%.

From the experts' point of view, despite the systematic recovery seen by economists in Q3 that could reach 17%, the UK economy would still be 8% lower than its pre-pandemic level.

The country's benchmark, UK100 is currently trading higher by 0.19%, while the GBP/USD is at 1.2865.

Sources: forexfactory.com, bbc.com


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Most affected instruments

GBP/USD

$ 10

UK100

$ 10