The UK economy grew 15.5% in the third quarter

The UK economy grew 15.5% in the third quarter

A man wearing a face mask or covering due to the Covid-19 epidemic walks behind a statue of the Beatles in Liverpool, north-west England, on October 2, 2020.

Oli ScarfF | AFP | Getty Images

According to preliminary data released on Thursday, the UK economy grew 15.5% in the third quarter as it began to bounce back from a sharp recession.

Economists surveyed by Reuters had expected quarter-on-quarter expansion in GDP (gross domestic product) in the three months to September. It comes after an unprecedented 19.8% dip in the previous quarter as nationwide lockdown activities waned.

The rise in the third quarter marks the UK’s sharpest quarterly expansion since records began in 1955, but GDP is still below 9.7% where it was at the end of 2019, the National Statistics Office said Thursday. Compared to the third quarter of last year, GDP fell 9.6%.

Monthly growth slowed in the third quarter. According to the ONS, GDP grew .3..3% in July, fell to 7.5% in August and 1.1% in September, while according to the ONS, it was driven by commercial, scientific and technological industries.

However, England is now expected to lose steam in the last three months of the recovery year, in a one-month partial lockdown until at least 2 December amid a resurgence in coronavirus cases.

Deadline for reaching agreements for the UK and the EU Post-Brexit relationship The end-of-the-year “no-deal” scenario is also being quickly predicted, leading to widespread economic collapse.

‘Keep champagne on ice for now’

The announcement was made by UK Finance Minister Shi Sunak recently Expansion of the country’s furlough scheme By the end of March, while the Bank of England in an attempt to stem the sudden rise in unemployment Expanded its target stock of property purchases £ 895 billion (tr 1.2 trillion). The central bank estimates contraction at 11% during the year.

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“The recovery in the economy is clearly positive, but we should keep the champagne on ice for now,” said Laith Khalaf, a financial analyst at investment platform AJ Bell. Bell’s financial analyst Laith Khalaf said.

“The summer boom was turbo-charged by Eat out to help The plan is, while Furlow did the magic by keeping the plan wrapped up in unemployment. “

Khalaf suggested that the real “litmus test” would be how quickly the economy could return to epidemic levels, and although news of the Pfizer vaccine success gave businesses hope, unemployment and bankruptcy were likely to increase during the winter. Even failed Brexit negotiations could give the economy “helpless pressure in the wrong direction.”

James Smith, an economist at ING’s developed markets, said the third-quarter figure was “as good as possible because it is currently available.”

“During October we will see a modest decline in GDP, reflecting the ‘tiered sanctions’ in England (which may have acted as a further stretch for hospitality) and the local lockdown in Wales,” he said.

“However, this decline will be extended in November, where we anticipate a 7-7% slide in monthly GDP on the month-long English lowdown downturn. As a result, there will also be a negative figure for Q4.”

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