Will the UK's economy be able to carry on the momentum in Q4 2020?

  • November 16, 2020 01:24 AM GMT
  • Team Kalkine

The UK economy recorded a GDP growth of 15.5% quarter on quarter in Q3 2020, but it was below the industry forecast of 15.8%.

The quarterly GDP growth was the highest since 1955; however, the UK economy has contracted year on year as the growth declined by 9.6% in Q3 20.

Despite posting substantial numbers, the UK's GDP growth was weaker than the GDP growth of the US, which grew by 33.1% in Q3 20.

The UK's economy has recovered from the summer, but the recovery has slowed due to the recent lockdown measures.

The “Eat Out to Help Out” scheme by the government was one of the critical factors that supported the growth. The recent lockdown measures have deterred the consumer's confidence and economy has started to slow down.

To cope up with the surge in unemployment, Rishi Sunak recently announced the extension of the furlough scheme until March 2021. It is believed that if the decision for furlough extension until March 2021 had been taken earlier, the growth numbers for Q3 could have been better.

The Bank of England has already highlighted that it does not expect the economy to reach the pre-pandemic level before 2022. It would be interesting to watch out whether the economy would be able to sustain the growth momentum in the near term or not.


The website https://kalkinemedia.com/uk is a service of Kalkine Media Ltd (Kalkine Media), Company Number 12643132. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK