GDP fell by 2.6% month-on-month in November, according to data from the Office for National Statistics (ONS). GDP fell to 8.5% below its pre-pandemic level during the month, with the slide driven by the second national coronavirus lockdown in England. Analysis shows that GDP dipped 3% in the first three months of 2020 before registering a record 19% fall in Q2. While Q3 saw a record jump of 16% as growth returned, analysts expect Q4 to see another dip. With tough new Covid restrictions currently in place, Q1 2021 is forecast to show a decline, meaning two consecutive quarters of falling GDP and a second recession. Chancellor Rishi Sunak said the ONS figures highlight the scale of the challenge being faced, saying: “It’s clear things will get harder before they get better”. James Smith, research director of the Resolution Foundation, says that while the economic story “is of only the second-ever double-dip recession on record, the story of the year will be a vaccine-driven bounce back in economic activity”.
Read more: BBC News
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