By It’s hardly surprising that the UK economy has suffered a record annual decline last year.
The UK economy shrank by a record 9.9% last year as coronavirus restrictions hit output, the Office for National Statistics (ONS) says.
In December, the economy grew by 1.2%, Hospitality, car sales and hairdressers recovered some lost ground.
The growth means the UK economy looks set to avoid what could have been its first double-dip recession since the 1970s.
A double-dip is when the economy briefly recovers from recession, only to quickly sink back. A recession is generally defined as two consecutive quarters where the economy contracts.
Economists said that with Covid-19 restrictions expected to remain until early spring, the hit to the economy will continue over the next few months.
“We anticipate a sharp decline in activity during the first quarter of the year,” said Kemar Whyte, senior economist at the National Institute of Economic and Social Research. “Nevertheless, growth will pick up from the second quarter onwards as restrictions ease on the back of a successful vaccination programme.”
Chancellor Rishi Sunak pledges further support for the COVID-hit economy as large parts remain in hibernation after a torrid 2020.
The chancellor says his priority remains protecting jobs as official figures show the coronavirus crisis had dealt the worst blow to the economy since the Great Frost of 1709.
