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.