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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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Feydhoo Hall opens at dusitD2 Feydhoo Maldives as new event space

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Dusit International, one of Thailand’s leading hotel and property development companies, has announced the opening of Feydhoo Hall, a landmark event venue at dusitD2 Feydhoo Maldives, redefining the possibilities for meetings, celebrations, and destination events in the Maldives.

Designed to bring scale, flexibility, and creativity to island gatherings, Feydhoo Hall represents a bold step forward in positioning the Maldives as a dynamic destination for conferences, weddings, and large-scale social occasions.

Feydhoo Hall offers a versatile event complex designed to accommodate a wide range of gatherings, from corporate meetings and conferences to weddings and social celebrations.

At its core is the 390 sqm Main Hall, capable of hosting:

  • Up to 300 guests in theatre-style setup
  • Up to 240 guests for dining and banquet-style events
  • Up to 200 guests for cocktail-style receptions
  • Up to 144 guests in cluster-round configuration

Enhancing the flexibility of the venue are additional dedicated spaces, including:

  • A 110 sqm Veranda Terrace, ideal for welcome receptions, breakout sessions, and pre-event gatherings, accommodating up to 100 guests for cocktail-style events.
  • A spacious 1,000 sqm Lawn Space, perfect for large-scale outdoor celebrations, destination weddings, and open-air events, accommodating up to 400 guests for cocktail receptions and up to 350 guests for dining setups.
  • The 55 sqm Ekugai Meeting Room, designed for smaller meetings and executive sessions, accommodating up to 30 guests in theatre or dining setup and 24 guests in cluster-round format.

Together, these integrated spaces create a seamless indoor-outdoor event experience, allowing planners to design dynamic and personalised event journeys.

True to the dusitD2 brand’s lifestyle-driven philosophy, Feydhoo Hall introduces a fresh approach to meetings and events — where productivity meets creativity in an inspiring island setting.

The venue offers flexible meeting formats designed to suit different event needs, including:

  • Half-Day Meeting Package (4 hours) — ideal for focused sessions, executive meetings, and creative workshops.
  • Full-Day Meeting Package (8 hours) — designed for immersive conferences, extended workshops, and large-scale corporate gatherings.

These thoughtfully structured packages provide planners with the flexibility to create impactful and seamless experiences, whether hosting intimate strategy sessions or dynamic full-day events.

Located just seven minutes by speedboat from Velana International Airport, dusitD2 Feydhoo Maldives combines accessibility with vibrant lifestyle energy, offering event planners and guests a rare balance between convenience and tropical escape.

With the introduction of Feydhoo Hall, the resort strengthens its position as a versatile destination — not only for leisure travellers but also for international conferences, creative retreats, luxury weddings, and large-scale social celebrations seeking something refreshingly different in the Maldives.

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BBM expands retail presence with new Hulhumalé outlet

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Bestbuy Maldives (BBM) opened a new wholesale store in Hulhumalé Phase 2 on Monday.

The outlet is located on the ground floor of Lot 20286, Nirolhu Magu, and is intended to improve access to BBM’s imported goods for residents of Hulhumalé Phase 2 and for businesses operating in the area.

According to the company, the opening forms part of its plan to expand services closer to customers in line with population growth in Hulhumalé.

With the opening of the new store, BBM’s full range of imported and distributed products will be available at the Hulhumalé Phase 2 location. These include consumer goods from international brands such as Lifebuoy, Vaseline and Unilever.

The store will also stock wholesale food products from brands including Daily, Cavin’s and Redman.

BBM has supplied goods to resorts, hotels and retail outlets across the Maldives for several years.

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Ataraxis Grand & Spa hosts integrated work-and-dive corporate retreat in Fuvahmulah

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Ataraxis Grand & Spa recently hosted a week-long, closed corporate offsite in Fuvahmulah for a US-based artificial intelligence company, highlighting the island’s growing suitability for integrated work-and-experience retreats. The retreat brought a group of 36 international professionals to the property, which was reserved exclusively for the programme.

Designed as a private company offsite, the stay combined structured daily work sessions with guided diving and beginner-friendly surf experiences, creating a balanced format that blended focused collaboration with physical reset.

A notable component of the programme was dive training and certification. During the retreat, 17 participants completed their Open Water certification, while a further six undertook the Advanced Open Water course, with training and dives scheduled alongside work sessions as part of the integrated itinerary.

Throughout the week, participants worked on-site using dedicated shared spaces supported by reliable high-speed internet, allowing meetings, informal collaboration and scheduled activities to take place within a single, uninterrupted environment. This setup enabled teams to move seamlessly between work periods and organised ocean activities without leaving the property.

Fuvahmulah’s natural and operational advantages formed a key part of the retreat’s appeal. As one of the Maldives’ largest inhabited islands, it offers immediate access to pelagic dive sites, internationally recognised shark diving and surf breaks suitable for instruction, alongside the infrastructure required to support extended group stays.

The offsite reflects a growing preference among technology and knowledge-sector teams for small-scale retreats that prioritise concentrated work environments and team cohesion over traditional conference formats. Such programmes typically involve longer stays and higher per-capita spend, aligning with sustainable, quality-driven tourism models.

The retreat also demonstrates how locally operated properties such as Ataraxis Grand & Spa are supporting this shift by delivering unified environments where accommodation, workspaces, connectivity and curated experiences operate as a single programme rather than separate services.

As organisations continue to explore alternative formats for strategy sessions, team resets and creative offsites, Ataraxis Grand & Spa’s experience positions Fuvahmulah as an increasingly viable destination for integrated corporate retreats.

Ataraxis Grand & Spa offers work-and-dive retreat programmes in Fuvahmulah that combine accommodation, dedicated workspaces, high-speed connectivity and organised diving and surfing.

Further information on retreat formats and dive-inclusive stays is available via the Ataraxis Grand & Spa website.

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