UK Economy Grows Record 15.5% In Q3 UK economy grows 15.5% in third quarter amid strong recovery from recession, preliminary data. Economists polled by Reuters were expecting 15.8% GDP growth after an unprecedented 19.8% drop in the previous quarter, fueled […]
UK Economy Grows Record 15.5% In Q3
UK economy grows 15.5% in third quarter amid strong recovery from recession, preliminary data.
Economists polled by Reuters were expecting 15.8% GDP growth after an unprecedented 19.8% drop in the previous quarter, fueled by nationwide isolation measures.
The rebound in the third quarter marks the steepest quarterly gain in the UK since the start of statistics in 1955. However, the economy is still 9.7% below its level at the end of 2019. Compared to the third quarter of last year, GDP fell by 9.6%.
Monthly growth has slowed throughout the third quarter. GDP grew 6.3% in July, slowing to 2.2% in August and 1.1% in September, ONS reports..
However, given that England is now in partial isolation again at least until December 2 amid renewed coronavirus cases, recovery is expected to slow markedly in the last three months of the year..
Deadline for the UK and EU to reach an agreement on their post-Brexit trade relations are also fast approaching, and the scenario «no deal» will surely cause further economic turmoil.
UK Treasury Secretary Rishi Sunak recently announced extension of the population support program until the end of March in an attempt to stave off a sudden surge in unemployment, while the Bank of England expanded its target stock of asset purchases up to 895 billion pounds. The regulator estimates the decline in GDP by 11% during the year.
«Strong economic recovery inspires positive, but it’s too early to open champagne», – said Light Khalaf, financial analyst of the investment platform AJ Bell.
He noted the importance of how quickly the economy can return to pre-crisis levels. While news of the success of Pfizer’s vaccine development has given hope to businesses, rising unemployment and bankruptcy are still likely over the coming winter..
«Failed Brexit Negotiations Could Also Give The Economy A Wrong Direction», added Khalaf.