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A UK recovery of sorts

11 September 2020

As the UK emerged from lockdown restrictions over the summer, the month of June saw a strong bounce back in activity recording a record 8.7% jump in GDP. July continued in the same vein rising 6.6%. Despite this GDP still has only recovered about half of what was lost since March and still lies 11.7% lower than it was in February. This recovery, if that is what it can be called will be a long drawn out affair and the outlook is far from certain with Covid-19 case rises still a threat to any rebound in growth. If that was not enough then the furlough support scheme ending next month will undoubtedly see a rise in unemployment unless Chancellor Sunak extends it. And now we have a government reneging on international agreements, a surprising move even for PM Johnson which pushes hard Brexit probabilities to all-time highs. Domestically the outlook remains difficult and from an international perspective with a structurally weak exchange rate, UK investment opportunities are hardly shouting from the rooftops.     

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