UK economy contracts by the most in 300 years in 2020 after pandemic hit



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UK economy contracts by the most in 300 years in 2020 after pandemic hit

Earlier on Friday, Govt. data had revealed that the UK economy, world’s sixth-largest by nominal GDP, had witnessed the steepest plunge in gross outputs in more than three-hundred years in 2020, as a double whammy of a still-inflaming pandemic outbreak alongside uncertainties over a decipherable post-Brexit trade deal seemingly had kept large investors at bay, joining a string of G20 economies which had reported a double-digit contraction last year.

Though, Japan, the world’s third-largest economy, had borne the heaviest brunt of a still-raging pandemic outbreak last year, contracting as much as 27 per cent on an unadjusted basis. Nonetheless, official figures had also unveiled that the British economy, which had shrunk by nearly 10 per cent on an unadjusted basis last year, had clocked a 1.0 per cent gain in Gross Domestic Products over its fiscal third-quarter of the year that ended on December 31, suggesting that a post-Brexit UK had prevailed two straight quarter of contractions which has been a standard definition of a recessed economy in Europe, however, the British economy has been en route to log a contraction in fiscal fourth quarter of 2020, largely due to a recent leg of stiffer restriction measures amid a resurgence of a new variant of a pandemic outbreak.

UK anticipate strident upswing after restrictions are lifted

Meanwhile, Bank of England (BoE) had forecasted a contraction of 4 per cent in British economy over the first three months of 2021, mostly stemmed off the fiscal fallouts of a flurry of new restriction measures alongside Brexit-led disruptions.

Nevertheless, since the UK economy had shown a greater resilience in December, growing as much as 1.2 per cent after diving 2.3 per cent a month earlier due to a partial lockdown measure, expressing an out-and-out optimism over a swift recovery of UK economy, an economist at UBS Global Wealth Management, Dean Turner said, “As and when restrictions are eased, we continue to expect a vigorous rebound in the economy.