The UK economy grew at a record pace in the third quarter of the year as the country emerged from lockdown but still nearly 10 per cent smaller than it was before the pandemic
Official figures show that GDP grew 155 percent between July and September – the largest quarterly gain ever – after the reopening of non-essential shops, pubs and bars
It followed a record 198 percent in Q2 and 25 percent in the first three months of the year
Shadow Economy 8 The Office for National Statistics said it was 2 percent smaller in September than it was in the fourth quarter of 2019
Worryingly, the recovery continued to slow in September, the month when parts of England were subject to domestic restrictions as case numbers rose. The UK’s economic output grew by just 1 per cent a month compared to 67 per cent in July and 22 percent in August when the government took out food to help with the scheme to subsidize people’s meals in restaurants
With England undergoing its second national lockdown this month while Scotland and Northern Ireland are under tight restrictions and Wales just emerged from a « fire break », GDP is expected to decline again in the last three months of the year
Jonathan Atho, deputy national statistician at the Office for National Statistics (ONS), said: “While all major sectors of the economy continued to recover, the rate of growth slowed again as the economy remained well below the pre-pandemic summit.
“Housing construction also continued to recover with a boost in business for lawyers and accountants after a bad August
« However, bars and restaurants saw less business activity after the » Eat Out Help « scheme ended, and accommodations saw less activity after a successful summer.
Last week, the Bank of England announced that it would create another 150 billion pounds to boost the economy. The bank expects GDP to contract another 2 per cent this year, putting the UK on the right track for one of the worst economic performance of any rich country. The year
If the bank is right, the UK economy will be 11 per cent smaller at the end of 2020 than it was initially. By contrast, the US is on track to shrink by about 35 per cent, Germany’s Council of Economic Advisers said Thursday. It expects the German GDP to decline by 51% for the whole year
While UK consumers have increased their spending near the levels they had seen before the pandemic, business investment has decreased, indicating that the government has failed to provide reassurance about the economic situation in the future
Counselor Rishi Sunak acknowledged that the recovery slowed in the fall and said: « The steps we have had to take since then to stop the spread of the virus mean that growth has slowed further since then. »
“But there are reasons to be cautious about optimism on the health side – including promising news about tests and vaccines.
« There are still tough times ahead, but we will continue to support people by doing so and ensure that no one is left without hope or opportunity »
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Reserve Bank of India, GDP, UK, Recession
World News – Britain – The British economy is growing at a record rate but is still well below the pre-epidemic level
