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.