The UK economy almost stopped growing in July. It remains more than two percent below pre-coronavirus pandemic levels. Behind the July stagnation is the spread of the delta variant of coronavirus, statistics estimate.
The UK’s gross domestic product increased by only 0.1 percent in July compared to June. At the same time, between May and June, economic growth reached one percent. This is according to the current estimate of the British National Statistics Office. This is the smallest increase in the performance of the British economy this year. At the same time, economists expected that July’s GDP growth would be around 0.6 percent.
According to experts, the rise in the new wave of the coronavirus epidemic may be behind the de facto halt to the UK’s economic recovery, as the delta infection has begun to spread significantly in the British Isles. The July result may significantly influence the decision of the Bank of England, which is likely to postpone the already considered increase in interest rates. The British central bank can still afford a loose monetary policy for some time, as inflation fell to 2 percent in August from 2.3 (July) and 2.5 (June), respectively.