LONDON– The U.K. economy recorded its greatest contraction in more than 3 centuries in 2020, according to official estimates, highlighting the Covid-19 pandemics financial toll on a country that has likewise suffered one of the worlds deadliest break outs.
The U.K. is grappling with a brand-new, extremely infectious variation of the coronavirus, Prime Minister Boris Johnson is confident that a rapid vaccination drive will allow a gradual reopening of the economy in the coming months, paving the way for a consumer-driven rebound later on in the year.
Gross domestic item diminished 9.9% over the year as an entire, the Office for National Statistics stated Friday, the largest yearly decline amongst the Group of Seven innovative economies. Frances economy shrank 8.3% and Italys contracted 8.8%, according to provisionary quotes.
The data revealed the U.K. economy grew at an annualized rate of 4% in the last quarter of the year, aided by federal government spending and a small uptick in business investment.
The decrease in U.K. GDP in 2020 was the biggest in more than 300 years, according to Bank of England data, though the preliminary quote is likely to be revised. BOE data reveals the economy last taped an equivalent drop in 1921, when it shrank 9.7% during the anxiety that followed World War I. The economy last recorded a bigger contraction in 1709, when it toppled 13% throughout an abnormally cold winter season called the Great Frost.