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UK economy grows 16% in the third quarter

UK economy grows 16% in the third quarter

The British economy recorded a record growth rate during the third quarter of the year, after a historic contraction during the second quarter due to the negative repercussions of the Corona pandemic on the economy, while expectations remain pessimistic with the return of lockdown measures. 

The final reading of the GDP index of the British economy during the third quarter of the year showed a growth of 16%, after the preliminary reading witnessed a growth of 15.5%, while the previous reading for the second quarter indicated a contraction of 18.8%.

On the annual level, the British economy continued to contract by 8.6% compared to the same period last year, and the previous reading was witnessing a contraction of 20.8%.

In November, net government borrowing expanded to 31.6 billion pounds from the previous reading of 21.7 billion pounds. The Office for National Statistics also said that Britain borrowed a record 241 billion pounds (323 billion dollars) in the first eight months of the year. The fiscal year is nearly £190 billion more than the same period the previous year.

Analysts believe that the deficit will reach nearly 400 billion pounds in the year 2020/21, which is approximately 20% of GDP, or twice the size of the negative impact that the economy incurred due to the global financial crisis.

The current account deficit expanded during the third quarter to 15.7 billion pounds from the previous reading, which saw a deficit of 11.9 billion pounds. 

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