“The economy began to bounce back in June with stores reopening, factories beginning to increase production and housing construction continuing to recover,” ONS deputy national statistician Jonathan Athow said in the statement.
The figures show that the hit for the UK economy was less than countries in Continental Europe such as France and Germany, whose lockdown limitation was previously required.
Treasury Chancellor Rishi Sunak acknowledged the depth of the problem and promised to continue supporting the economic recovery through tax and spending policies.
‘I have said before that hard times are ahead, and today’s figures confirm that hard times are here. Hundreds of thousands of people have already lost their jobs, and as a result, many more will want to do so in the coming months, ”he said in a statement via email.
The UK has also seen its biggest drop in employment since the global financial crisis.
Sunak urged the people to keep the faith, saying that “although difficult choices must be made in advance, we will get through here, and I can assure people that no one will remain without hope or opportunity.”
Economists warn that the UK will have a smarter job in recovery than most developed countries.
“With many companies unable to operate as normal – and increasing uncertainty about prospects for the health crisis – the economy will take time to recover,” said James Smith, research director at the Resolution Foundation’s think tank. “The longer-term impact of the crisis on living standards will depend on the extent of the rise in unemployment and how long it lasts.”
Sunak is apparently considering postponing his budget statement for the fall, which was expected next month, due to fears of a second wave of infections.
This article has been updated.
