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Daily Mirror
Daily Mirror
Business
Sam Barker

UK economy sees tiny growth of 0.5% after months of shrinking and recession fears

The UK's economy grew by 0.5% in May, after two months of shrinking - mostly because more people are going to the doctors.

Figures released by the Office for National Statistics (ONS) show the growth was driven by healthcare - like more people visiting a GP.

The 15% rise in GP appointments in May was the single biggest reason why the economy grew.

The fact the economy grew at all surprised economists, who were expecting to see a third month of it shrinking.

More HGV transport and a boom in people visiting travel agents to book holidays also helped the GDP figures.

GDP fell by 0.3% in April 2022 and 0.1% in March 2022.

ONS director for economic statistics Darren Morgan, said: "The economy rebounded in May with growth across all main sectors.

Holidaymakers also helped turn the economy around - but more economic slowdown is predicted (LightRocket via Getty Images)

"Health was the biggest driver with many more people seeing GPs, despite test and trace and the vaccination programmes winding down.

"Road hauliers also had a busy month, while travel agencies fared well with pent up demand for summer holidays.

"There was widespread growth across manufacturing after several tough months, while construction also fared well with housebuilding and office refurbishment driving growth."

GDP is the value of all the UK's goods and services if lumped together and given a number in pounds.

UBS economist Dean Turner said: "The GDP print for May, showing an expansion of 0.4% over the month, came in much stronger the than expected, however, it is too early to break out the champagne, as the details in the release still point to an economy under pressure as the cost-of-living crisis squeezes households’ ability to spend.

"The one bright spot remains the travel sector, with demand for holidays remaining strong."

Many financial experts think the economy will shrink again over the next few months before growing later in the year.

Last month Downing Street said it was "too early” to say if Brexit has lead to the UK economy shrinking in March and April 2022.

Cabinet minister George Eustice had claimed “I don’t accept that Brexit is a factor in this” after GDP fell 0.3% in April 2022.

But Boris Johnson ’s official spokesman admitted he could not give a firm verdict one way or the other.

He told journalists: “At this stage, and this is not solely our view, it’s too early to pass judgement on that, particularly given there were two years of a global pandemic following Brexit.

“But we are confident that the opportunity Brexit provides will be a boon to the UK economy in the long term.”

The government’s Budget watchdog says Brexit has had an effect on trade.

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