UK economy faces 9.9% GDP slump in 2020 due to COVID-19

The UK economy fell by a record hit of 9.9% last year due to COVID-19 pandemic and its economic consequences, although there was 1.0% increase in the fourth quarter, official data showed on Friday 12th February.

“Over the year 2020 as a whole, GDP contracted by 9.9 per cent, marking the largest annual fall in UK GDP on record,” the Office for National Statistics said in a statement.

Chancellor of the Exchequer, Rishi Sunak, said, “Today’s figures show that the economy has experienced a serious shock as a result of the pandemic, which has been felt by countries around the world. While there are some positive signs of the economy’s resilience over the winter, we know that the current lockdown continues to have a significant impact on many people and businesses.

“That’s why my focus remains fixed on doing everything we can to protect jobs, businesses and livelihoods. At the Budget I will set out the next stage of our Plan for Jobs, and the support we’ll provide through the next phase of the pandemic.”

This 9.9% slump leaves the economy at a position last seen in 2013.

The trajectory of the GDP began with a decrease of 2.9% in Q1, followed by an unprecedented 19% slump in Q2 owing to the first national lockdown. The economy then announced 16% growth in Q3, prior to the second wave of COVID-19 which resulted in fresh restrictions making the recovery sluggish to 1% in Q4.

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