UK economy saw partial recovery in Q3, recession risks ahead

  • Date: 23-Dec-2020
  • Source: Zawya
  • Sector:Economy
  • Country:Middle East
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UK economy saw partial recovery in Q3, recession risks ahead

But that still did not make up for its 18.8% slump in the second quarter, when much of the economy was shut down.Britain's economy was hit harder by the pandemic than most others as it went into a longer lockdown. Only Italy has recorded more deaths in Europe.Now London and nearby areas are back under tough restrictions as the government tries to slow the spread of a new variant of the virus that spreads more easily.Capital Economics, a consultancy, said a double-dip recession was a clear possibility if the latest COVID-19 restrictions continue into 2021.The economy almost ground to a halt in October and is expected to shrink again in the fourth quarter as worries about the Dec. 31 deadline for a Brexit trade deal with the European Union compound the damage from COVID-19.But Capital Economics said a high savings rate among households "provides optimism that as long as vaccines are effective and widespread, GDP will stage a strong rebound in the second half of next year."Tuesday's data showed the economy was 8.6% below where it was at the end of 2019.It also showed household incomes grew in the third quarter as workers returned from temporary layoffs. Consumer spending rose