UK Economic Growth Cools in Q3; Trade Balance at -£14.5 Billion

Source: Office for National Statistics

The UK’s economy continued to grow in the third quarter, albeit at a slower pace, while the trade deficit during the same period widened by double digits. EWU is up 0.57%.

• The UK gross domestic product is expected to have grown by 1.3% in the third quarter, marking the second straight quarter of expansion.
• The latest reading is slower than the 5.5% growth recorded in the second quarter, and the 17.4% growth in the same quarter in 2020.
• Growth drivers were hospitality, arts and recreation, and health, as restrictions were eased and the economy was reopened.
• The latest level is 2.1% lower than where it was prior to the COVID-19 pandemic in the fourth quarter of 2019.
• The trade balance stood at a £14.5-billion deficit, as exports grew by 1.9% to £26.4 billion, while imports jumped 5.9% to £41.0 billion.