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The British economy grew more than expected in the final quarter of last year to head off a possible double-dip recession even as the coronavirus delivered a record decline for 2020 overall.
Gross domestic product rose 1 percent in the last three months, on its way to an overall decline for the year of 9.9 percent, the Office for National Statistics said on Friday. The figures prompted the government to pledge continued support for the economy.
“There have been increases in services, production and construction output,” the ONS said, adding that its estimates are subject to “more uncertainty than usual” because of the COVID-19 pandemic.
The fourth-quarter growth was slightly better than the Bank of England anticipated last week and likely keeps Britain technically out of a second recession, even with the economy plunging again in January and February. By contrast, the EU is on course for a double dip.
“GDP should rebound sharply in the second half of 2021,” Capital Economics said, echoing remarks by Bank of England Chief Economist Andy Haldane in a Daily Mail editorial on Thursday.
Commenting on the data, Chancellor Rishi Sunak said he will use his March 3 budget to outline “the support we’ll provide through the next phase of pandemic.”
“Today’s figures show that the economy has experienced a serious shock as a result of the pandemic, which has been felt by countries around the world. While there are some positive signs of the economy’s resilience over the winter, we know that the current lockdown continues to have a significant impact on many people and businesses.”
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