LONDON: Britain’s economy enjoyed a record third-quarter rebound from its deepest ever recession, data showed Thursday, but experts predict another slump after fresh coronavirus restrictions were introduced to curb the pandemic.
Gross domestic product (GDP) expanded by 15.5 percent in the July-September period, after an initial coronavirus lockdown was eased, the Office for National Statistics said in a statement.
Activity bounced back after shrinking by almost a fifth in the second quarter on the back of the first lockdown.
But the economy is still grappling with the virus fallout, according to the data, which was published one day after Britain’s Covid-19 death toll passed the grim milestone of 50,000 — the highest in Europe.
Growth slowed in September with a month-on-month expansion of just 1.1 percent, after the end of the government’s restaurant discount scheme for the devastated hospitality sector.
Output was also hit after more localised measures to control the virus were imposed in parts of northern and central England, as well as in Scotland and Wales.
The ONS on Thursday said the UK economy was 9.7 percent smaller than its level late last year, in line with BoE forecasts.
The outlook brightened somewhat after US pharma giant Pfizer and Germany’s BioNTech announced Monday that their candidate for a Covid-19 vaccine had been 90 percent effective, boosting hopes of a return to normality next year.
BoE governor Andrew Bailey on Thursday described the vaccine announcement as “encouraging”, adding that it “reduces uncertainty”.—AFP
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