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UK economy limps out of COVID-19 slump as dire 2020 unfolds

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LONDON (Reuters) – Britain’s economy stumbled out of its coronavirus-induced slump in May, dashing hopes of a swift rebound as government budget forecasters said it was on course for its worst year since pre-industrial times.

Gross domestic product grew less than any economist polled by Reuters had forecast, up 1.8% after a record 20.3% slump in April when lockdown curbs were tightest, figures from the Office for National Statistics showed.

With activity in the dominant service sector not recovering as expected in May, Tuesday’s data fuelled doubts about how much of a bounce-back Britain will see after more businesses were allowed to reopen in June and July as Europe’s worst coronavirus outbreak eased.

“For anyone thinking the data were beginning to point to a sharp V-shape (recovery), today is something of a setback,” HSBC economist Simon Wells said.

The pound slipped to a two-week low against the euro EURGBP= and two-year British government bond yields GB2YT=RR fell to their lowest level on record after the data.

Fallout from COVID-19 slashed economic output by more than a quarter over March and April, and around 9 million Britons currently have their salary paid through a government programme supporting employers hit by the pandemic, which ends in October.

Finance minister Rishi Sunak announced a further 30 billion pounds of funding to support the economy last week, but has accepted that joblessness will rise.

The government’s Office for Budget Responsibility said on Tuesday that unemployment was likely to surge to 11.9% this year under its central scenario, and exceed 13% under a downside prediction that assumed COVID-19 damage would be harder to recover from.

Economic output in 2020 was likely to be 12.4%-14.3% lower in the two scenarios, the biggest drop in more than three centuries, while government borrowing would surge to between 322 and 391 billion pounds.

While this borrowing was necessary to support the economy, “it seems likely that there will be a need to raise tax revenues and/or reduce spending to put the public finances on a sustainable path,” the OBR said.

‘W-shaped recovery?’

More than 44,000 people in Britain have died from COVID-19, the highest death toll in Europe, and a second wave of infections could bring a new round of lockdowns, derailing the rebound and damaging long-term confidence.

“Hopes of a ‘V’-shaped recovery are fading fast, and I suspect we’re looking at something resembling far more of a ‘W’ – a series of improvements and relapses, before a proper recovery takes hold,” said Tom Stevenson, an investment director at fund manager Fidelity International.

Britain’s government closed non-essential shops and other businesses to the public on March 23, shortly after ordering the closure of bars, restaurants and cinemas.

May’s limited economic rebound was driven by just 0.9% growth in the services sector, also well below economists’ forecasts.

The wholesale and retail sector made the biggest contribution to growth after being the largest drag in April.

Industrial output and construction also recovered strongly, in line with forecasts.

Economists said they had based their more upbeat forecasts for growth as a whole in May on private-sector surveys and other fast economic indicators that pointed to a more broad-based rebound.

“Firms were more cautious emerging out of lockdown than consumers,” Barclays economists Fabrice Montagne and Abbas Khan wrote, cutting their forecasts for GDP growth in 2020 and 2021.

Reporting and photo: Reuters

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Barcelo Nasandhura Malé to open in Q1 2025

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Barcelo Nasandhura Malé, the Maldives’ newest luxury destination, is set to open its doors in Q1 2025.

Located on the site of the former Nasandhura Palace Hotel, the property will become the largest hotel in the capital, Malé. With 136 elegantly designed rooms, including 95 with stunning ocean views, and 116 luxurious serviced apartments, Barcelo Nasandhura Malé promises a unique blend of sophistication, comfort, and convenience in the heart of this vibrant city.

Operated by the renowned Spanish hotel chain Barcelo Group, the hotel represents a significant expansion of the brand’s presence in the Maldives and beyond. Barcelo Group, known for its exceptional resorts, recently opened Barcelo Whale Lagoon Maldives in South Ari Atoll in August 2024, further solidifying its growing portfolio in the region. In addition to its Maldivian properties, Barcelo Group manages a range of high-profile hotels across the UAE, Thailand, and several European countries.

Barcelo Nasandhura Malé will feature an array of premium facilities, including four upscale dining outlets, a rooftop shisha bar, an oceanfront pool, a state-of-the-art gym, and a luxurious spa. The hotel will also boast 1,034 square meters of versatile MICE (Meetings, Incentives, Conferences, and Exhibitions) space, making it an ideal venue for corporate events and gatherings.

While some serviced apartments were initially intended for residential use, they will now be available for daily rental, offering guests enhanced flexibility and a wider range of accommodation options. Originally scheduled to open on December 1, 2024, the opening has been slightly delayed due to minor construction work. However, the team remains committed to ensuring Barcelo Nasandhura Malé is ready to welcome its first guests in Q1 2025.

Barcelo Hotel Group, awarded World’s Leading Hotel Management Company 2023 by the World Travel Awards, is the second-largest hotel chain in Spain and ranks among the 30 largest globally in terms of the number of rooms. Founded in 1931, this family-run organisation operates 280 four- and five-star city and holiday hotels, offering more than 62,000 rooms across 25 countries. The group markets its hotels under four distinct brands, each focused on providing diverse and memorable travel experiences.

Renowned for its commitment to excellence and sustainability, Barcelo Hotel Group delivers exceptional stays, seamlessly blending luxury, comfort, and environmental responsibility.

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Denise Hoefer brings world-class Padel to The Nautilus Maldives

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As part of its ‘Masters for Masters’ series, The Nautilus Maldives will host Denise Hoefer, Germany’s No. 1 padel player and one of the world’s top 50 most influential figures in the padel industry, for an exclusive Padel Masterclass from March 22 to 25, 2025. This exceptional event invites guests to enhance their padel skills under the expert guidance of a global champion, all set against the stunning backdrop of the Maldives’ Indian Ocean.

Padel, recognised as the world’s fastest-growing sport, has captured the hearts of 30 million enthusiasts globally, according to the International Padel Federation. This March, The Nautilus will provide a unique opportunity for guests to immerse themselves in this thrilling game during a four-day Padel Masterclass led by Denise Hoefer, Germany’s top-ranked female padel player and captain of the German national team. Participants will refine their techniques on The Nautilus’s state-of-the-art padel court, while experiencing the island’s signature blend of world-class coaching and timeless, unscripted hospitality.

The Padel Masterclass will feature a tailored mix of group and private sessions, catering to players of all levels. Younger participants will have the chance to join the Young Wonderers program, offering specially designed classes that introduce the sport in a fun and engaging way. After an energising day on the court, guests can unwind at Solasta Spa, where exclusive treatments by Maison Caulières—such as Spinal Connection Deep Tissue Healing, Volcanic Stone Therapy, and Warm Poultices—promise ultimate relaxation and rejuvenation. These tranquil spa experiences provide a perfect complement to the day’s dynamic activities, leaving participants refreshed and revitalised.

With just 26 ultra-luxury houses and residences, The Nautilus offers an intimate sanctuary within the Baa Atoll, a UNESCO Biosphere Reserve. Surrounded by powder-soft white sands, vibrant coral reefs, and crystal-clear waters, this private island retreat redefines bespoke hospitality. Every element is meticulously crafted to inspire, offering guests an unparalleled ultra-luxury experience focused on relaxation, renewal, and discovery. Whether honing padel skills or embracing the serenity of island life, The Nautilus stands as the ultimate destination for discerning travellers.

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BBM, Lifebuoy empowers hygiene practices among Maldivian children

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BBM, in collaboration with Lifebuoy, marked Global Handwashing Day 2024 with engaging activities aimed at instilling the habit of proper hand hygiene among Maldivian school children. Held on November 17th, the event continued the successful “H for Handwashing” campaign, blending education with creativity and fun.

The initiative featured info sessions, exciting games, and creative contests designed to teach children the importance of handwashing while giving them a hands-on understanding of the correct techniques. Activities ranged from reimagined board games like “Germs & Ladders” and “Handwashing Ludo” to interactive sessions that reinforced hygiene habits in an enjoyable way.

This campaign underscores BBM’s commitment to fostering healthier practices among the younger generation, contributing to a healthier and more hygienic Maldives. COO of BBM, A.V.S. Subrahmanyam, emphasised, “At BBM, we believe that empowering the next generation with the knowledge and tools for better hygiene practices is vital for building a resilient and healthy community. We are proud to continue our efforts in collaboration with partners like Lifebuoy.”

Adding to this, Muksith Hussain, Head of Retail Sales at BBM, shared, “Reaching children through such innovative initiatives helps us lay the foundation for a healthier tomorrow. We are thrilled to see the enthusiasm and participation of these young minds in learning the importance of hygiene.”

The event also saw valuable support from the Maldivian Red Crescent (MRC), whose contributions enriched the experience for the children. BBM expressed gratitude for MRC’s involvement, as their efforts played a key role in making the event impactful and memorable.

Through campaigns like this, BBM aims to nurture a lifelong habit of handwashing, creating a brighter and healthier future for the Maldives.

Let’s keep the spirit alive—join the Handwashing Revolution with BBM and Lifebuoy!

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