UK Economy in Deepest Annual Flops since 1709 Great Frost
The coronavirus crisis meant the UK economy endured its deepest annual flops since the Great Frost in 1709 last year, according to official figures.
The Office for National Statistics (ONS) said early estimates, subject to revision, showed that gross domestic product (GDP) tumbled by 9.9% in 2020.
It was a consequence of large parts of the economy being placed in hibernation through unprecedented lockdowns and other restrictions on normal activity as efforts to contain COVID-19 took their toll on output.
The figures showed a fightback from the record quarterly flops between April and June, the second quarter, when GDP tumbled by 20% as a consequence of the initial lockdown.
They also confirmed a so-called double-dip recession was averted at the end of the year amid renewed lockdown conditions, with a first estimate for the October-December quarter showing growth of 1% better than expected performance.
ONS deputy national statistician for economic statistics, Jonathan Athow, said: “Loosening of restrictions in many parts of the UK saw elements of the economy recover some lost ground in December, with hospitality, car sales and hairdressers all seeing growth.” An increase in COVID-19 testing and tracing also boosted output.
The economy continued to grow in the fourth quarter as a whole, despite the additional restrictions in November. However, GDP for the year fell by nearly 10%, more than twice as much as the previous largest annual fall on record.
The consequences of the public health emergency reach far beyond lost output as previous ONS figures, yet to fully reflect 2020 as a whole, show more than 1.7 million out of work with over 800,000 fewer people on company payrolls since the pandemic began.