UK GDP grew by record 16% in Q3

Britain's economy recovered faster than expected in the third quarter.

That's according to official data released Tuesday (December 22).

It showed gross domestic product grew a record 16% from July to September.

That was not enough, though, to make up for its near 19% slump in Q2 - when much of the country was shut down.

Household income grew as many workers went back to work after temporary layoffs.

Consumer spending rose by almost a fifth as households spent savings piled up during the previous quarter, when people were ordered to stay at home.

But the Bank of England says the summer's positive GDP figures will not be repeated in Q4.

It predicts GDP will shrink again as worries about the Brexit deadline on December 31 and new lockdown restrictions take hold.

Tuesday's data showed the economy was 8.6% below where it was at the end of 2019 - less than an initial estimate of 9.7%.

The economic updates came as government borrowing also soared in the first eight months of the year.

New figures show the UK borrowed a record $323 billion - around $255 billion more than in the same period the previous year.

The country's budget forecasters think the deficit will hit around $537 billion over the financial year, close to 20% of GDP.

If so, it would be double the hit from the global financial crisis.