Latest UK GDP data “Less cheers”
UK GDP has shrunk by 9.9% in 2020.
The severe impact of the pandemic has resulted in a more than double drop in production that occurred as a result of the 2008 financial crisis.
Faced with continued national restrictions, the economy rose 1% in the fourth quarter. But despite Britain eschewing its first double-dip recession since the 1970s, the outlook for 2021 is pessimistic.
According to Jonathan Athow, Associate National Statistician at ONS, the increase in testing and tracking boosted the output, allowing the economy to grow during the last three months of the year.
“The British Chamber of Commerce and Industry’s economics officer Slen Till said: We rarely support the latest data. ”
There are no signs of restrictions yet, and the economy will continue to pay prices for the coming months.
“We expect a sharp decline in activity in the first quarter of the year,” said Kemmer White, senior economist at the National Institute for Economic and Social Studies. “Nevertheless, growth will rise from the second quarter onwards as restrictions become easier behind successful vaccination programs.”
According to Russ Mold, AJ Bell’s investment director, there is a positive look into the long term.
“Many households have saved a significant amount of money over the past year, so if the restrictions are ultimately lifted, there could be a lot of spending,” Mold said.
From an investment perspective, Mold outlined the ongoing support for companies most affected by the pandemic.
“Investors continue to show strong support for certain companies affected by the pandemic, thinking that the recovery could be very strong. Airline Jet2 has announced a “significant support for the latest funding.” “We reported demand. There, we raised £422 million to help us see it through the crisis,” Mold added.
