The government has announced a slowdown following September’s measly 1.1% growth. Following the extreme contractions the economy suffered in the first 2 quarters of 2020, the July – September period offered a swift partial recovery with the successful Eat out to Help out scheme. Here is where we are at right now:
The economy shrank by 8.2% and a 19.8% respectively in the first and second quarter – two consecutive periods of negative growth marking a recession. After the rebound, the UK economy is still down by 10%, October struggled with stricter restrictions and November will definitely suffer the consequences of the second lockdown.
However, advisors to the UK government remain optimistic – for one there has been a recent boost of 15.5% in all sectors of economy – services, manufacturing and construction!
The government is prioritising to “protect as many jobs as possible” with the extension of the furlough scheme and a new Kickstart job scheme targeted at young people – tackling the age group with the highest rate of unemployment.
The chief UK economist predicts only a further 0.5% contraction to the economy for the final quarter of 2020 and states that the source of “uncertainty” in the first months of 2021 are potential trade disruptions from the Brexit transition – so keep a look out for more on this!
By far, the biggest boost to the UK economy is set to be Pfizer vaccine that is currently in the works – to be released in early December!