It is expected that in the coming months the UK economy will stall and could even hit reverse, as the country is facing a triple threat set to hit.
The UK is facing a second wave of coronavirus, along with furlough coming to an end this month and then the Brexit transition period which ends on 31 December.
Alejandra Grindal, senior international economist at Ned Davies Research, told Yahoo Finance UK, “Going forward, the UK almost has this perfect storm.”
The Office for National Statistics (ONS) data shows a nascent recovery from the largest economic collapse the UK saw during the pandemic.
Gross Domestic Product (GDP) grew by just 2.1% in the month of August, which fell short of forecasts by economists, down from 8.7% recorded in June.
Barclays Bank economist Fabrice Montagne warned, “The absence of momentum does not bode well.”
Tens of thousands are facing the dole queue when the furlough scheme ends at the end of this month, then the government are set to introduce new restrictions across the UK.
“There is further cause for concern ahead,” said Dr Kemar Whyte, a senior economist at the National Institute of Economic and Social Research.