The The British economy contracted in the last year More than any of the G7 countries, while the Bank of England says it will be the largest economic recession in the country in more than 300 years.
what happened? The lockdowns have caused more pain for the UK than other members of the Group of Seven advanced economies, in part because they are particularly dependent on consumer spending, which has evaporated amid one of Europe’s most serious Covid-19 outbreaks. The economy was already weak after four years of negotiations BrexitAs investment in businesses declined and families held back from spending.
This is the starting point for New Britain’s relationship with the European Union, Which started on January 1 with A loose free trade agreement. Earlier this month, the prime minister Boris Johnson announced another nationwide lockdown To fight a new, more contagious type of corona virus. This puts the British economy on its way to contracting again in the first quarter of the year, when companies also have to deal with new European trade arrangements.
Growth in the UK has already been weak with the entry of the pandemic due to weak business investment, weak productivity and insignificant income growth. Once the coronavirus emerged, the British economy contracted by more than its G7 counterparts in the first nine months of the year. The latest quarter numbers, due on February 12th, are expected to show that the economy has contracted again.
The UK took a bigger hit because around 13% of its annual GDP comes from spending on entertainment, culture, restaurants and hotels, a share higher than any other G7 country. Businesses that rely on direct contact with consumers – bars, restaurants, sporting events, hotels, theaters, cinemas and museums – have faltered when social distancing became the norm and when the spread of the virus forced them to close. The current lockdown, in place through mid-February, is closing unnecessary schools and stores, and people have only been told to leave the house if needed.