Commenting on this morning’s UK GDP data, Melanie Baker, senior economist at Royal London Asset Management said:
“Despite November’s lockdowns, the UK economy managed to eke out a more than respectable pace of growth in Q4 2020, by pre-crisis standards.
“Given that the economy shrank 2.3% month-on-month in November, the bounce in December was relatively tepid however, and January will see the UK economy contract yet again.
“A strong second half recovery looks in prospect given the UK’s so far successful vaccine rollout, but the uneven global rollout and threats of virus mutation still threaten to make Covid a reduced, but ongoing challenge for the UK economy.”
The views expressed are the author’s own and do not constitute investment advice.