UK economy shrank record 11% in 2020, worst since 1709

UK economy shrank record 11% in 2020, worst since 1709

LONDON, 22nd August, 2022 (WAM) — Britain recorded its biggest fall in output in more than 300 years in 2020 when it faced the brunt of the COVID-19 pandemic, updated official figures showed on Monday, Reuters reported.

Gross domestic product fell by 11 percent in 2020, the Office for National Statistics said. This was a bigger drop than any of the ONS’s previous estimates and the largest fall since 1709, according to historical data hosted by the Bank of England.

The ONS’s initial estimates had already suggested that in 2020 Britain suffered its biggest fall in output since the “Great Frost” of 1709. But more recently the ONS had revised down the scale of the fall to 9.3 percent, making Britain’s economic slump the largest in the Group of Seven.

“The health service faced higher costs than we initially estimated, meaning its overall contribution to the economy was lower,” ONS statistician Craig McLaren said.

A closer look at the increased costs faced by individual retailers also led to a downward revision of the sector’s contribution, while factory output was revised up to take account of lower raw material costs.