UK economy grows 15.5% but GDP still lower than before Covid

Britain’s economy grew by 15.5% between July and September.

Britain’s economy grew by 15.5% between July and September, the Office for National Statistics announced today. In September it only increased by 1.1% and is still way below its pre-pandemic peak which indicates that a recession is coming.

Vocid, UK economy grows 15.5%

Jonathan Athow, the Deputy National Statistician for Economic Statistics, said:

“While all main sectors of the economy continued to recover, the rate of growth slowed again with the economy still remaining well below its pre-pandemic peak.

The return of children to school boosted activity in the education sector. Housebuilding also continued to recover, while business strengthened for lawyers and accountants after a poor August. However, pubs and restaurants saw less business, after the ‘eat out to help out’ scheme ended, and accommodation saw less business after a successful summer.

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All main sectors of the economy lost momentum although the effect was felt but especially in the accommodation and food services sectors. News of a possible vaccine from drug manufacturer Pfizer boosted the economy this week but still would not prevent rising job losses in the next year according to economists.

Rishi Sunak. the Chancellor of the Exchequer, has also extended the furlough scheme until March.

A fund manager at Premier Miton, Jon Hudson, said:

“Growth in the quarter started brightly, boosted by the easing of lockdown restrictions and the Eat Out to Help Out scheme in August, but it waned in September. With lockdown restrictions back in place, Q4 is likely to weaken further, however, thanks to the recent positive Pfizer vaccine news, we can potentially start looking forward to GDP growth in 2021 with more confidence.”