The rebound could lose some steam given the second lockdown
The latest report from the British Office for National Statistics showed its economic trajectory in the past quarter.
For the quarter ended in September, the economy grew by 15.5%, marking a rebound from the sharp downturn. Despite the significant increase, the figures came below the 15.8% consensus. However, it comes after Q2's plunge of 19.8%, the lockdown's effects being felt by the economy. Compared to Q3 2019, the GDP contracted by 9.6%.
The GDP's rebound is the sharpest one yet since records began in 1955. Still, the GDP is 9.7% below the numbers reported at the end of 2019.
Now, analysts expect the GDP to grow at a slower pace, given that the UK is in a month-long partial lockdown until at least the beginning of December. The new restriction was imposed after a resurgence in COVID-19 cases.
"Today's figures show that our economy was recovering over the summer but started to slow going into autumn. The steps we've had to take since to halt the spread of the virus mean growth has likely slowed further since then," read the chancellor of the exchequer Rishi Sunak's statement. Earlier this month, he announced that the country's furlough scheme would be extended until March 2021, while the Bank of England expanded the stock of asset purchases to $1.2 trillion.
Sources: forexfactory.com, cnbc.com, theguardian.com
This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com
JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.