“This time it is a pandemic accountable whereas again then, it was a Nice Frost, which noticed ice within the North Sea, and the Battle of Spanish Succession … which was doing the injury,” wrote Societe Generale strategist Equipment Juckes in a analysis word on Friday.
However there have been huge swings in output between October and December, largely monitoring the extent of restrictions imposed to include the coronavirus.
The US fared even higher by comparability, with GDP reducing by 3.5% from the prior yr.
“At present’s figures present that the economic system has skilled a critical shock because of the pandemic, which has been felt by international locations world wide,” UK finance minister Rishi Sunak stated in an announcement. “Whereas there are some optimistic indicators of the economic system’s resilience over the winter, we all know that the present lockdown continues to have a major influence on many individuals and companies.”
“It appears that evidently a double dip [recession] was merely delayed relatively than averted outright,” Sam Miley, an economist on the London-based Centre for Economics and Enterprise Analysis stated in a word on Friday.
Disruption to EU-UK commerce following the top of the Brexit transition interval on December 31 can also be weighing on exercise.
The survey additionally discovered that almost 40% of British adults suffered financially as a consequence of the pandemic, with youthful staff, Black folks and the self-employed among the many hardest hit.
“The speedy rollout of the vaccination programme throughout the UK means a decisive nook has been turned within the battle in opposition to Covid,” he stated. “A decisive nook is about to be turned for the economic system too, with monumental quantities of pent-up monetary vitality ready to be launched, like a coiled spring,” he added.
— Will Godley contributed to this text.