Hospitality bounce back 'main contributor' to GDP growth

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The reopening of the hospitality sector helped the UK economy to grow by 4.8% in the second quarter of 2021, according to the Office for National Statistics (ONS).

The country’s gross domestic product (GDP) increased by a further 1% in June, creating five consecutive months of growth.

However, overall GDP remains 2.2% below its pre-pandemic level.

Services continued to be the main contributor to GDP’s recovery in June 2021, growing by 1.5% in June 2021.

Food and beverage services activities rose by 10.1% and was the main contributor to the growth in consumer-facing services, boosted by the reopening of indoor hospitality in May.

Continued strong growth means that the industry is now only 1.5% below its pre-pandemic level, and 9% above its August 2020 peak when the Eat Out to Help Out Scheme boosted consumer demand for bars and restaurants.

“The UK economy has continued to rebound strongly, with hospitality benefiting from the first full month of indoor dining, while spending on advertising was boosted by the reopening of many services," says Jonathan Athow, the ONS’ deputy national statistician for economic statistics.

Chancellor Rishi Sunak says the latest figures showed the UK was 'bouncing back' from the Covid crisis.

“Today’s figures show that our economy is on the mend, showing strong signs of recovery,” he says.

“I know there are still challenges to overcome, but I feel confident in the strength of the UK economy and the resilience of the British people.”