Economics

U.K. Economy Caps Worst Year Since 1709 With a Surprising Surge

  • Fourth quarter gains avert immediate risk of another recession
  • Bank of England chief economist expects a rapid recovery
WATCH: Chancellor Rishi Sunak says the U.K. economy is showing "signs of resilience."Source: Bloomberg
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The U.K. economy grew at double the pace expected in the fourth quarter, showing signs of resilience to coronavirus restrictions at the end of a year that delivered the worst recession since 1709.

Figures published Friday add some weight to the Bank of England’s view that while the economy will likely shrink in the first three months of the year, a successful vaccine rollout and a surge in household savings during lockdowns could power a sharp recovery in 2021.