UK GDP shrank by 9.9% last year amid Covid-19 lockdowns, the worst since modern records began, and only beaten by the Great Frost of 1709
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Here’s Anneliese Dodds MP, Labour’s Shadow Chancellor, on the news that the UK economy shrank by a record 9.9% last year:
“These figures confirm that not only has the UK had the worst death toll in Europe, we’ve experiencing the worst economic crisis of any major economy.
“Businesses can’t wait any longer. The Chancellor needs to come forward now with a plan to secure the economy in the months ahead, with support going hand-in-hand with health restrictions.
Today’s GDP figures confirm we’re experiencing the worst economic crisis of any major economy.
Britain can’t wait until the Budget. The Chancellor must act now to protect jobs with smart furlough, help business with rates relief and VAT reduction, and support new job creation.
The pound has taken the GDP report in its stride too.
It’s currently trading around $1.38, not too far from the 33-month high ($1.386) hit this week.
The economy was adding in December despite record COVID-19 numbers. A separate report showed a 1.7% m/m growth in the service sector, the most vulnerable part of the economy during a lockdown.
The massive vaccine roll-out in January and the continued vaccination rate offers hope for an accelerated economic recovery.