UK GDP surpasses expectations of 4.9% contraction
Rishi Sunak today announced that UK GDP fell 2.9%, causing the economic impact of the coronavirus pandemic.
“Today’s numbers highlight the impact the pandemic has continued to have on our economy earlier this year when we tackle a new variant of the virus. We know that this is a source of concern for many. “We’re doing this,” the Prime Minister said.
The office said on Friday that GDP DIP was a result of a decline in retail sales and education as the UK aimed to stop the spread of Covid-19. The UK economy is 9% smaller than before the pandemic, which began more than a year ago, ONS added.
According to ONS, manufacturing has declined for the first time since April as the UK adapted to a new arrangement with the EU.
Exports to the bloc fell 41% in January as EU imports fell 28.8%.
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Ian Warwick, managing partner at Deepbridge Capital, commented on the UK’s GDP falling 2.9%.
“The numbers reflect the UK’s difficult start to this year amid the uncertainty of Brexit and Covid. However, at the end of the long journey there is a faint light of clear light. The UK has already seen its own right. With over 23 million coronavirus vaccinations administered, the number of daily infections is declining.”
Rupert Thompson, chief investment officer at Kingswood, turned his attention to other factors during the play.
“The lockdown paid more sacrifices on the UK economy in January than expected, but GDP fell 2.9% a month, rather than the expected 4.9%.”
Thompson also reflected the long-term impact of Britain leaving the European Union.
“However, what’s more noteworthy was the sharp decline in EU trade, where exports and imports fell by 41% and 29% respectively, respectively. How much this has fallen to lockdowns, how much it has fallen to Brexit. More importantly, which of the latter reflects the toothing problem and we see that it will soon turn back.”
