UK economy contracted by 9.9 percent in 2020 due to pandemic
In England, one of the countries worst affected by the coronavirus epidemic, the economy shrank by 9.9 percent last year.
The British economy, which has experienced the biggest annual loss in more than 300 years, recovered towards the end of the year, avoiding recession and gave signs of recovery for 2021.
According to official data, the national income of the country increased by 1 percent in the last quarter of the year. The economy, which contracted by 2.3 percent in November, when the second restriction came into effect, grew by 1.2 percent in December.
Experts think that the economy will recover strongly with the relaxation of restrictions imposed on the coronavirus.
But the Bank of England predicts that the British economy will shrink by 4 percent in the first three months of 2021 due to Brexit and new epidemic measures. According to the bank’s projections, the economy will only be able to return to pre-Covid-19 levels in early 2022.
Economy Minister Rishi Sunak emphasized that the announced data reveal the shock effect of the pandemic on the economy.
How long the government, which has made the biggest borrowing since the Second World War, will continue the incentives will be determined in the new budget to be prepared in early March.
Vaccination speed gives hope Britain was the economy that received the biggest blow from the epidemic in Europe after Spain. However, the fact that it moves faster in vaccination compared to other European countries also increases the estimates that it will be fast in recovery.
While the industrial sector in the country was less affected by the epidemic, the service sector, which is the backbone of the country’s economy, was hit hard. On the other hand, the increase in unemployment rates was well below the expectations thanks to the incentives provided by the state for employment.
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