Economy set to bounce back

Economy bouncing back stronger than expectedRevised data from the Office for National Statistics (ONS) shows that Britain’s recovery during the second half of last year was stronger than first estimated, with the figures showing that the economy expanded by 16.9% in Q3 2020 and 1.3% in Q4, marking an increase on initial estimates of 16.1% and 1%. However, the revised numbers also show that GDP shrank by more than had been initially thought in Q2, declining by 19.5% between April and June as opposed to the 19% previously estimated. The ONS said GDP fell by 9.8% in 2020, marking a slight shift on the 9.9% initially estimated. Bank of England figures suggest this was the biggest contraction since 1709. The ONS report also shows that while disposable incomes rose by just 0.1% in 2020, the saving rate - money saved as a share of disposable income - increased from 14.3% in Q3 to 16.1% in Q4.