UK GDP was down by 9.9% across 2020 – the largest fall on record. The size of the economy is now back to a level similar to that in 2013.
The latest ONS figures show the economy grew in the final quarter of 2020 (October-December) by 1%. This was thanks to increases in services, production and construction output – though still below pre-pandemic levels.
The Bank of England governor says he is optimistic the UK economy will make a strong recovery as restrictions are eased.
Responding to the latest figures, chancellor Rishi Sunak said there were “signs of resilience” despite the “significant” economic shock. Sunak will set out the next stage of the government’s economic response at the Budget on 3rd March.
Labour’s shadow chancellor, Anneliese Dodds, said:
“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.”