UK economy shrank by record 10% in 2020

12 Feb 2021

The UK economy shrank by almost a tenth in 2020 as the coronavirus (COVID-19) pandemic adversely affected businesses, according to the latest figures from the Office for National Statistics (ONS).

The data shows that UK GDP declined by 9.9% last year, which is the largest contraction on record.

The slump came after a historic recession at the start of the year, caused by the onset of the COVID-19 pandemic in February and March. The economy began to rebound in the third quarter but remains 7.8% smaller than it was at the end of 2019, the ONS said.

The annual slump wiped out seven years of growth, taking the UK economy back to the size it was in 2013. The ONS said the UK economy did recover slightly, recording 1% of growth in the fourth quarter of 2020.

Commenting on the figures, Alpesh Paleja, Lead Economist at the Confederation of British Industry (CBI), said: 'The UK economy grew slightly towards the end of the last year, as a second lockdown in November was partly offset by a pick-up in GDP over December. But with restrictions tightening again in the New Year, we'll likely see further dips in activity. 

'Getting the pandemic under control is critical to our recovery, and speedy rollout of vaccines gives us some hope. But until this ends the stop-start cycle of lockdowns, businesses will need support to continue in parallel with restrictions.'

Try a site search Tax return, dividends, pension, autumn statement...

SagexeroSage
Company details

01243 776938

James Todd & Co, 1&2 The Barn, Oldwick, West Stoke Road, Chichester PO18 9AA
James Todd & Co, 16 Northgate, Chichester, West Sussex PO19 1BJ
Copyright

© 2021 James Todd & Co. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


James Todd & Co is the trading name of James Todd & Co Limited. Chartered Accountants and Registered Auditors. Registered No: 07350649 in England. VAT No. 322087875. ICAEW Firm Reference No: C002730145 and James Todd & Co (Lewes) Ltd (formerly known as Axtons). Chartered Accountants. Registered No: 11214467 in England. VAT No. 290460506. ICAEW Firm Reference No: C005791297

Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details of our audit registration can be viewed at www.auditregister.org.uk

Details of our Designated Professional Body (DPB) activities can be viewed at register.fca.org.uk. A member of the ICAEW Practice Assurance Scheme.