UK economy shrinks by 9.9 percent, biggest drop since 1709
Kathmandu, February 13. The UK Office for National Statistics(ONS) on Friday confirmed that the national economy has shrunk by 9.9% in 2020. It is the highest recorded annual contraction since the Great Frost of 1709.
According to the report, the first two quarters of 2020 saw a heavy decline in the country’s economy, as strict lockdowns were imposed. Britain managed to pull up the Gross Domestic Product(GDP) to 16.1% in the third quarter of 2020. In the final quarter, the reopening of businesses helped the economy to grow by 1%. “An increase in COVID-19 testing and tracing also boosted output,” noted ONS Deputy Jonathan Athow.
But, despite two consecutive quarters of growth, Britain’s economy is 7.8% below its Quarter 4 2019 level. Experts had expected an 8% drop in the annual GDP with a 0.5% expansion in the fourth quarter.
The pandemic has severely hit the world’s largest economies. UK’s 9.9% contraction in annual GDP is the worst among the G7 countries. France’s economy contracted by 8.3%, Germany by 5%, the United States by 3.5% and Canada’s economy is estimated to contract by around 5%.
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