Friday, February 12, 2021
Biggest disadvantage in group G7
The British economy collapses without precedent
Britain recorded a historic collapse in its economy in the first Crown year. The country suffered particularly from the lockdowns and their focus on services. Prime Minister Johnson wants to boost the economy again over the course of the vaccination campaign.
The British economy plummeted under the burdens of the crown last year. Gross domestic product (GDP) was 9.9 percent lower than the previous year, as the statistics agency announced in an initial estimate. For the year as a whole, both household spending and business investment fell dramatically. This is the largest decrease within the group of the seven major industrialized countries (G7). France’s economy contracted by 8.3 percent, Italy by 8.8 percent and the German economy by 5.0 percent. Britain’s economic recession follows 1.4 percent growth in 2019.
Despite the UK dealing with a highly contagious new variant of the coronavirus, Prime Minister Boris Johnson hopes that a swift vaccination campaign in the coming months will allow the economy to gradually recover and pave the way for a speedy recovery. However, it is the first year for the country after leaving the EU and the end of the transition period.
The UK economy had been particularly hard hit in the second quarter of the year when a nationwide shutdown took effect. The UK economy is more dependent on services, which often require face-to-face contact, than other comparable economies. Meanwhile, the UK economy grew faster than expected in the fourth quarter. Quarterly GDP increased one percent.
In the UK, a curfew was again imposed in January to contain the spread of the new variant, which should cause another contraction in the first three months of the year. A vaccination campaign has so far reached more than 13.5 million people, about a fifth of the population. Johnson plans to present plans to gradually reopen the economy later this month.
The GDP drop in 2020 was one of the largest in UK history. The Bureau of Statistics said it was the biggest drop in records, dating back to 1948. Bank of England data showed the economy last experienced a major decline in 1921, during the Depression that followed World War I. .
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