British economy to grow on lockdown easing, outlook remains dim

After a record decline seen last quarter, Britain’s economy is expected to grow at its most rapid pace in decades. The recovery is likely as large portions of the economy resumed operations after coronavirus-related lockdowns were lifted.

Despite near-term optimism, only six participants believed that the British economy recovered. Almost 85% of participants, 32 of 38, believed that the outlook remained stagnant or had worsened over the previous month.

But as the country emerged from lockdowns and people started spending again, the economy was predicted to expand 12.2% in the third quarter. This prediction placed higher than June’s outlook of a 10.5% growth.

The increase followed after the second quarter had seen an 18.9% contraction. Meanwhile, economists believed that a second wave of virus outbreak would threaten any economic recovery.