London — The UK’s coronavirus-stricken economy grew faster than previously thought in the last three months of last year, but overall shrank most in more than three centuries in 2020. ..
According to the National Bureau of Statistics of China (ONS), gross domestic product (GDP) increased 1.3% from the previous three months from October to December last year.
This was stronger than the previous estimate of 1.0% growth as ONS received more data in the last few weeks.
Economists surveyed by Reuters expected growth to stay at 1.0%.
In 2020, gross domestic product fell 9.8% from 2019, but only slightly slower than the initial estimate of 9.9%.
According to OECD data, the UK economy suffered the largest decline of any country in the Organization for Economic Co-operation and Development (OECD), with the exception of Argentina and Spain last year.
The UK economy remained 7.3% smaller than before the inflation-adjusted pandemic, the second-largest decline of the eight major economies listed by ONS.
However, Britain stood in the middle of the herd, as nominally the different ways countries edit data are less affected.
Data also showed that households are sitting on a pile of savings that the Bank of England believes will help boost spending as the government lifts economic restrictions from now to late June.
The savings rate rose from 14.3% in the third quarter to 16.1%, reaching a record high of 16.3% in 2020 as a whole from 6.8% in 2019.
According to other data, the UK’s current account deficit expanded to £ 26.3bn in the fourth quarter, almost doubling the shortfall in the third quarter. This is because companies rushed to import goods before the opening of trade relations with the European Union on January 1st.
However, the deficit has long been a concern for investors as it relies on the UK for foreign cash inflows, which fell short of the £ 33 billion forecast in Reuters polls.
That’s 4.8% of GDP, or 4.2% excluding the volatile movement of precious metals such as gold.
By William Schomberg and Andy Bruce