GDP (QoQ) (UK)
Event Date: Friday, February 11, 2022
Event Time: 07:00 CET
Q4 2020 GDP to Remain Unchanged at 1.1%
Updated Tuesday, February 8, 2022
The pace of expansion of the UK economy was slowing for several months during Q1 2018. Although in Q2, the economic growth returned to normal, increasing to 0.4% as September's report showed. In Q3, the final reading in October showed that the GDP grew by 0.6% in Q3, which is impressive considering Brexit. But in Q4 the global economy weakened further as did the UK economy and the final GDP reading for that quarter came at 0.2%. The Q1 of this year was expected to be better with the economy expected to have expanded by 0.5%. The UK economy expanded by 0.5% indeed in Q1 in the prelim reading and the final reading remained unchanged. But in Q2, we saw a 0.2% contraction. The economy expanded by 0.3% in Q3, as we saw in the last reading, but fell flat in Q4. But the worse was still to come for Q1 of this year and the economy contracted by 2% in Q1 due to coronavirus shut-down. The Q2 was horrible, with a 19.8% decline but in Q3 we saw a 16% expansion. Although restrictions returned again in Q4, but the economy grew by 1.3%, although Q1 of 2021 it came at -1.6%. In Q2 we saw improvement, so the GDP is likely to turn positive again. Please follow us for live coverage in real time of the event by experienced analysts.
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About GDP (QoQ) (UK)
Gross Domestic Product (GDP) measures the total value of a country’s industrial output over a given period. It consists of the aggregate domestic production of goods and services by individuals, businesses, and government. GDP data is available in dollar or index form. U.K. GDP (MoM) is the comparison of growth from one fiscal quarter to the next, represented in a percentage format.GDP (MoM) is a leading indicator of U.S. economic health. High levels of GDP growth are viewed as being positive for U.K. indices as well as the GBP. Low levels of growth are negative to most asset classes and are common to recessionary cycles. The Bank of England (BOE) places a great deal of emphasis on monthly and yearly GDP. Robust growth is often a prelude to monetary tightening, while stagnate levels provide an environment conducive to Quantitative Easing (QE).Traders monitor GDP (MoM) releases closely. Abnormal reports may cause rapid buying or selling of the U.K. indices or GBP. Currency, equities, and commodities markets all exhibit enhanced degrees of volatility surrounding the GDP release.
The UK gross domestic product (GDP) in volume terms was flat in Quarter 4 (Oct to Dec) 2019, following the revised growth of 0.5% in Quarter 3 (July to Sept) 2019.
The UK GDP increased by 1.1% to Quarter 4 2019; down from a revised 1.2% in the previous period. The GBP/USD is gaining support over the news release.
The GBP/USD is heading towards the next resistance area which is around 1.2945. A bullish breakout of this can extend buying until 1.2969.