UK record its biggest fall since 1709, GDP shrank by record 11 percent

HY News 24 August, 2022 02:47 pm IST
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The United Kingdom has recorded its biggest fall in output in more than 300 years in 2020 due to COVID-19 pandemic, according to Office for National Statistics (ONS). In a statement, released early this week, the Office for National Statistics said that Gross Domestic Product (GDP) fell by 11.0 per cent in 2020.

News agency AFP reported that the Office for National Statistics had originally estimated that Britain's gross domestic product shrank by 9.3 per cent in 2020, but the latest revision came about due to changes to the way the data are calculated, it said. The contraction represents the sharpest since the "Great Frost" of 1709, according to data held by the Bank of England.

Even before the latest revisions Britain's economic slump was the largest in the Group of Seven, and the latest downward revision makes it greater than Spain's, which recorded a 10.8% fall in output.

The downward revision in GDP reflected lower contributions from healthcare and retailers than previously thought.

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.

Britain's economy bounced back sharply last year and recovered its pre-pandemic size in November 2021. But fast-rising inflation means the Bank of England expects the economy will slip back into recession later this year.

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