Staff of Reuters 2 minutes Read this article (Adds data) (Reuters) – LONDON, June 30 (Reuters) – Once a result of the coronavirus lockdowns that closed bars, restaurants, and many businesses in early 2021, British consumers increased their savings dramatically, potentially improving their buying power as the restrictions are progressively lifted. The country’s savings ratio, which measures how much money households save as a percentage of their disposable income, increased to 19.9% in the fourth quarter of 2020 from 16.1% in the previous quarter, according to the Office for National Statistics. After a jump to 25.9% in the April-June period last year during the first coronavirus lockdowns, this was the second-highest savings ratio on record. The report also revealed that the UK economy shrank a little more than previously estimated in the first quarter, with gross domestic product down by 1.6 percent. GDP dropped by 1.5 percent in the first quarter, according to the ONS. Spending by households was lower than expected. The GDP drop in early 2021 was a sliver of the almost 20% drop in the second quarter of 2020, when Britain was placed on lockdown for the first time. Many businesses have adapted to the laws by expanding their internet operations, for example. Separate data from the ONS indicated that the UK’s current account deficit shrank to 12.828 billion pounds ($17.76 billion) in the first quarter, as the economy was impacted by the tightening of coronavirus laws, which hurt demand for imports. The deficit in the balance of payments was 2.4 percent of GDP, down from 4.8 percent in the fourth quarter of 2020. (1 pound = 0.7223 pound) (William Schomberg and Andy Bruce contributed reporting.) Continue reading