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- UK GDP grew more than expected in the 4th quarter
UK GDP grew more than expected in the 4th quarter
According to the report from Office for National Statistics, GDP is estimated to have increased by 1.3% in Quarter 4 (Oct to Dec) 2020, an upwards revision of 0.3 percentage points. Economists had expected a 1.0% increase.
There is little change to earlier estimate of UK gross domestic product (GDP) for 2020 as whole, which is now estimated to have contracted by 9.8%, slightly revised from the first estimate of a 9.9% decline; there are, though, revisions to the quarterly path through the year.
GDP in Quarter 2 (Apr to June 2020) is estimated to have fallen 19.5%, a downwards revision of 0.5 percentage points, and in Quarter 3 (July to Sept) is estimated to have grown by 16.9%, an upwards revision of 0.8 percentage points.
The household saving ratio increased to 16.1% in Quarter 4 2020, an increase from a revised 14.3% in Quarter 3 2020; over the year 2020, the household saving ratio rose sharply, reaching a record high of 16.3%, compared with 6.8% in 2019.
Non-financial corporations switched from a net lending position in Quarter 3 to a net borrowing position in Quarter 4; general government saw a decrease in their net borrowing position to 11.0% of GDP compared with 12.9% in Quarter 3.
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