UK recovery slows sharply on global supply disruptions

UK recovery slows sharply on global supply disruptions

LONDON: Britain’s economic recovery from pandemic fallout slowed sharply in the third quarter as global supply disruptions hurt businesses, official data showed yesterday. Gross domestic product grew 1.3 percent in the July-September period, down from 5.5 percent in the second quarter, the Office for National Statistics (ONS) said in a statement.

“As the world reopens we know that there are still challenges to overcome,” finance minister Rishi Sunak said in response. Despite the sharp growth slowdown in the third quarter, the chancellor of the exchequer added that the UK was “forecast to have the fastest growth in the G7 this year”. The ONS added that the UK economy was still 2.1 percent below its level before the outbreak of the coronavirus pandemic at the end of 2019.

The economy contracted 0.2 percent in July before rebounding in August and September, it said. ONS chief economist Grant Fitzner said that in the third quarter “business investment remained well down on pre-pandemic levels”. He added that the trade deficit widened as exports of goods to countries outside the European Union fell and imports, particularly of fuel, increased.

‘Significant headwinds’

As countries reopen from pandemic lockdowns, companies are struggling to meet demand for goods and services, sending