Economy bounces back by just 2% as Rishi warns of tough battle ahead
THE nation has begun its economic bounceback following the crippling coronavirus lockdown, figures show.
The economy grew by almost two per cent in May – the point at which Boris Johnson first started to ease restrictions.
Chancellor Rishi Sunak welcomed the return to economic growth but cautioned that there will be a long road to recovery.
He said: “Today’s figures underline the scale of the challenge we face.
“I know people are worried about the security of their jobs and incomes.
“That’s why I set out our Plan for Jobs last week, following the PM’s new deal for Britain, to protect, support and create jobs as we safely reopen our economy.
“Our clear plan invests up to £30billion in significant and targeted support to put people’s livelihoods at the centre of our national renewal as we emerge through the other side of this crisis.”
The growth was fuelled by our return to shops and spending on car repairs, according to the Office for National Statistics (ONS).
In May, the retail industry grew by 12 per cent thanks to strong sales in non-food stores and a record proportion of online sales.
The ONS also said the economy eked out growth as manufacturing and house building showed signs of recovery after restrictions began to be lifted.
The services sector grew by 0.9 per cent in May, while manufacturing rose 8.4 per cent and construction by 8.2 per cent, as factories and building sites started to get back to work.
But GDP has not yet recovered from record falls in March and April and is still down 24.5 per cent compared to pre-coronavirus levels in February.
May’s data has also raised concerns the recovery will be slower and more drawn out, suggesting a V-shaped rebound may not happen.
The economic growth figures came as the Government revealed that Bounce Back Loans worth £31.7billion have now been approved for small businesses amid the coronavirus crisis.
The Treasury said just over one million of the payments have been given the go-ahead.