The UK Economy Grows Four-Tenths in October

According to the National Office for Statistics, the United Kingdom’s gross domestic product grew 0.4% in October. However, it is 7.9% below the level before the coronavirus pandemic.

The services sector, considered the country’s economic basis, rose 0.2%. Meanwhile, the industrial sector advanced by 1.7% and the construction sector grew 1%.

Jonathan Athow, ONS Deputy Director of Statistics, said that the UK economy has grown for six consecutive months. But it is still around 8% below the pre-pandemic peak in February.

According to the British statistics office, the motor sector recovered after restrictive measures to contain the spread of covid-19 were slightly relaxed.

Besides, the retail sector registered a significant increase. However, restrictions in some parts of the country affected the restaurant and bar sector. So, overall growth in the UK economy was modest in October, Athow said.

Last November, the UK emerged from its technical recession after the gross domestic product grew 15.5% in the third quarter.

That figure reflected the recovery of economic activity between July and September when the Government eased the confinement measures imposed at the end of last March to contain the spread of covid-19.

However, compared to the previous three months, GDP growth between July and September is 9.7% below the level at the end of 2019.

Brussels and the United Kingdom take time until Sunday to negotiate

The President of the European Commission, Ursula von der Leyen, and the British Prime Minister, Boris Johnson, arranged their meeting in Brussels. They have given themselves until Sunday to decide if the obstacles are unconquerable or not. 

Sources of the British Government made these suggestions shortly after Johnson left the EC’s headquarters in Brussels. 

This Wednesday, he travelled there to meet with the head of the Community Executive and the Chief Negotiators of both sides: the European Michel Barnier and the Briton David Frost. How will the pound react with falls against the euro and the dollar?

The British Government says London does not want to leave anything unexplored for a possible agreement. So, Johnson and Von der Leyen have agreed to the negotiating teams working so that they can make a firm decision on the future of negotiations on Sunday.

Ursula von der Leyen tweeted that negotiations are still ongoing, but the end of the transition is near. She added that, even if an agreement is reached in the talks, there are no guarantees.