The British economy bounced back strongly in the third quarter of the year as lots of the restrictions associated with the spring lockdown were lifted, official figures showed Thursday.
The Office for National Statistics said the economy grew by 15.5% in the July to September period. Though that was once in line with market expectations, the recovery clearly eased in September, with monthly growth of only 1.1%, a lucid signal that the recovery was once already running out of steam before a resurgence of the coronavirus led to the reimposition of restrictions.
That quarterly growth did not make up for the record 19.8% fall recorded in the second one quarter when much of the economy was once shuttered in connection with the coronavirus lockdown, and the 2.5% fall in the first three months of the year. Despite the third-quarter improvement, the statistics agency said the economy is still 9.7% below where it was once before the pandemic at the end of 2019.
And the worry is that the economy will shrink again in the fourth quarter of the year after the resurgence of the virus led to fresh curbs on on a regular basis life across the United Kingdom England, for instance, is in the course of a four-week lockdown until Dec. 2.
“Britain’s covid crisis, and its recovery phase, will take far longer than many of us first thought,” said James Smith, research director of the Resolution Foundation.
The imposition of fresh restrictions has come at a especially inopportune time for lots of retailers, with Christmas just around the corner.
Under the terms of the present lockdown in England, nonessential places such as pubs, restaurants, hairdressers, golf courses, gyms, swimming pools, entertainment venues and stores selling items like books, clothing and sneakers, should remain closed until no less than Dec. 2. Unlike the United Kingdom’s spring lockdown, schools and universities in England are remaining open this time, as are construction sites and factories.
The government has responded to the fresh curbs, announcing that its beneficiant salary give a boost to scheme, which sees it paying 80% of the salaries of workers retained by firms relatively than fired, will be extended through March.
Treasury chief Rishi Sunak acknowledged that the health steps taken up to now few weeks “intent growth has likely slowed further since then.”
“There are still tough times ahead, but we can continue to give a boost to people through this and make sure nobody is left without hope or possibility,” he said.