The UK economy grew more than expected in the second half of 2020

The UK economy grew more than expected in the second half of 2020

The UK economy grew faster than previously thought in the second half of last year, according to official statistics which also confirm that output suffered the biggest drop in over 300 years in 2020 .

UK production rose 1.3% in the last three months of 2020 from the previous three months, an upward revision of 1%, according to data from the Office for National Statistics on Wednesday.

Third-quarter growth was revised to 16.9 percent, 0.8 percent higher than previously expected, while second-quarter output fell 0.5 percent more than previously thought previously at 19.5 percent.

Jonathan Athow, ONS deputy national statistician for economic statistics, said: “Our revised quarterly figures show that the economy has contracted a little more than was previously estimated in the early stages of the pandemic, before recovering slightly more strongly in the second half of last year. ”

With the revisions, the UK economy is estimated to contract by 9.8% in 2020, barely better than the 9.9% originally estimated. It is still the largest contraction in over 300 years, according to the Bank of England’s GDP Reconstruction.

Detailed GDP figures revealed that the household savings rate – the average percentage of disposable income saved – had risen to 16.1 percent in the last quarter. This is an increase from 14.3% in the previous three months and one of the highest rates since records began in 1963.

A high household savings rate, which reflects limited spending opportunities due to restrictions, fuels hope that the extra money will help stimulate economic recovery as businesses reopen.


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