UK economy sees robust rebound in Q3 after recession
Source: Xinhua | 2020-11-13
The British economy recorded a robust rebound in the third quarter (Q3) 2020 as the government eased lockdown measures, following a steep contraction in the second quarter (Q2), said the Office for National Statistics (ONS) Thursday.
Data revealed that the country's gross domestic product (GDP) was estimated to grow quarterly by 15.5 percent in Q3 following a plunge in Q2 due to the COVID-19 pandemic.
"There have been record quarterly increases in services, production and construction output in Q3 2020, mainly reflecting easing of lockdown restrictions and base effects from the steep contractions of the second quarter," said the ONS.
On a quarterly basis, the output of services, production and construction in Q3 increased by 14.2 percent, 14.3 percent and 41.7 percent respectively, figures showed.
"While there was confirmation that the UK exited recession, the historically strong headline figure masks a loss of momentum through the quarter, as the temporary boost from the release of pent-up demand as the economy reopened gradually faded," said Suren Thiru, head of economics at the British Chambers of Commerce (BCC).
Although the economy saw some recovery after the record contraction in Q2, the level of GDP was still 9.7 percent below that at the end of 2019. Meanwhile, compared with the same quarter a year ago, the country's economy fell by 9.6 percent, data indicated.
"UK GDP bounces back by over 15 percent in Q3 but is set to fall back in Q4 due to the current lockdown," tweeted Andrew Sentance, senior adviser to Cambridge Econometrics, a British-based global economics consultancy.
"Even in Q3 output was nearly 10 percent below a year ago. So the economy faces a long haul back to the pre-pandemic level of activity over the next two years," Sentance added.
Busiunion
Busiunion