UK economic growth slows sharply and still below pre-pandemic peak
September 10, 2021, 6:53 am

UK economic growth slows sharply and still below pre-pandemic peak

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The BBC reported, the UK economy grew by just 0.1% in July as the last Covid restrictions were lifted in England.

It was the economy's sixth consecutive month of growth, but the increase was much lower than in the previous month, which saw 1% growth.

Arts, entertainment and recreation activities helped the rise, but the "pingdemic" kept many workers at home.

The Office for National Statistics (ONS), the UK economy is still 2.1% below its pre-pandemic peak.

According to the BBC, the ONS said there had been a boost from outdoor events such as sports clubs, amusement parks and festivals following the easing of restrictions on social distancing on 19 July in England.

However, the main contributor to growth was a 1.2% rise in production output, boosted by the reopening of an oil field production site, which was previously temporarily closed for planned maintenance.

Jonathan Athow, deputy statistician of the ONS, said: "Oil and gas provided the strongest boost, having partially bounced back after summer maintenance. Car production also continued to recover from recent component shortages."

Many firms suffered from a lack of staff during July as workers were forced to self-isolate at home after being alerted by the NHS Test and Trace app, giving rise to what was dubbed the "pingdemic".

Services output was largely unchanged in July, but the construction sector contracted for a fourth consecutive month, with output down by 1.6%.

Construction has been affected by a shortage of building materials as prices have soared and supply has failed to match demand.

Overall, GDP grew by 3.6% in the three months to July, the ONS said.

Prof Jagjit Chadha, director of the National Institute of Economic and Social Research, told the BBC's Today programme that the increase for July was "lower than most people expected".

But he added: "The economy is slowly getting back to its pre-pandemic level. There were always going to be potholes along the way."

Samuel Tombs of Pantheon Macroeconomics said the economic recovery had been "stopped in its tracks" by a surge in Covid cases in July that had led to the "pingdemic" of workers told to self-isolate.

He added that there were signs that the economy had regained momentum in August.

"Nonetheless, surveys continue to show that a large minority of households remain fearful of contracting Covid-19, even though they have been double-vaccinated.

"This suggests that the recovery in consumer-facing sectors might run out of steam again in the autumn if, as we expect, Covid-19 cases and hospital admissions remain on their current upward trend," he said.

Kitty Ussher, chief economist at the Institute of Directors, said it appeared that "England's thrilling run" in the Euro 2020 tournament had boosted growth in June, leading to "a bit of fall-back" in July.

Chancellor Rishi Sunak said the figures showed the recovery was "well under way". But Labour's Bridget Phillipson, shadow chief secretary to the Treasury, said "Conservative complacency" was "holding our country back".

Source: BBC

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.