U.K. Economy Suffers Biggest Slump in 300 Years Amid Covid-19 Lockdowns
Official estimates confirm that the UK economy records its biggest contraction in more than three centuries in 2020 due to lockdown measures halting the operations of non-essential businesses and preventing people from shopping. The country has also suffered one of the world’s deadliest outbreaks. The country is currently grappling with a new Covid-19 variant that is more contagious, threatening to push the country’s economy even further into recession.
In 2020, gross domestic product shrank 9.9%, according to the Office for National Statistics. The figure represents the largest annual decline among the Group of Seven advanced economies. Meanwhile, France’s economy shrank by 8.3% while Italy’s contracted 8.8%. However, due to government spending and business investment, the UK economy grew at an annualized rate of 4% in the final quarter of the year.