Skip to content
Search
AI Powered
Latest Stories

UK economy shrank record 11% in 2020, worst since 1709

UK economy shrank record 11% in 2020, worst since 1709
Photo by BEN STANSALL/AFP via Getty Images
AFP via Getty Images

Britain recorded its biggest fall in output in more than 300 years in 2020 when it faced the brunt of the COVID-19 pandemic, as well as a larger decline than any other major economy, updated official figures showed on Monday.

Gross domestic product fell by 11 per cent in 2020, the Office for National Statistics said. This was a bigger drop than any of the ONS's previous estimates and the largest fall since 1709, according to historical data hosted by the Bank of England.


The agency regularly updates GDP estimates as more data becomes available.

The ONS's initial estimates had already suggested that in 2020 Britain suffered its biggest fall in output since the "Great Frost" of 1709. But more recently the ONS had revised down the scale of the fall to 9.3 per cent, the largest since just after World War One.

Even before the latest revisions Britain's economic slump was the largest in the Group of Seven, and the latest downward revision makes it greater than Spain's, which recorded a 10.8 per cent fall in output.

However the ONS cautioned against direct comparisons with other countries as most - with the exception of the US - had not yet undertaken the same type of in-depth revisions as Britain had.

The downward revision in GDP reflected lower contributions from healthcare and retailers than previously thought.

"The health service faced higher costs than we initially estimated, meaning its overall contribution to the economy was lower," ONS statistician Craig McLaren said.

The ONS had already factored in a fall in routine care provided by Britain's National Health Service as it focused on treating COVID-19 patients and limiting the spread of the disease in hospitals.

A closer look at the increased costs faced by individual retailers also led to a downward revision of the sector's contribution, while factory output was revised up to take account of lower raw material costs.

Britain's economy bounced back sharply last year and recovered its pre-pandemic size in November 2021. But fast-rising inflation means the Bank of England expects the economy will slip back into recession later this year.

The ONS will publish updated growth figures for 2021 and the first half of 2022 on Sept. 30.

More for you

Bira engages with Treasury on Budget fallout, business rate reform
(Photo by Christopher Furlong/Getty Images)
Getty Images

Bira engages with Treasury on Budget fallout, business rate reform

Independent retailers association Bira has held a meeting with members of the Treasury team to discuss concerns following its robust response to the Government’s recent Budget announcement.

The Budget, labelled by Bira as "devastating" for independent retailers, was met with widespread indignation from Bira members.

Keep ReadingShow less
East of England Co-op achieves 70 per cent productivity boost with Electronic Shelf Labels

East of England Co-op achieves 70 per cent productivity boost with Electronic Shelf Labels

East of England Co-op said it has improved labour productivity whilst improving customer service delivery in-store with an Electronic Shelf Label (ESL) solution from Pricer, the leading in-store automation and communication solutions provider.

Established in 1861, East of England Co-op is now the largest independent retailer operating in the East of England. In addition to the 120 food stores it operates in the region, the regional cooperative also offers customers specialist services, such as funerals, security, travel agents and petrol filling stations across Essex, Suffolk, Norfolk, Cambridgeshire and Hertfordshire.

Keep ReadingShow less
PayPoint

PayPoint delivers strong half-year results; retail network crosses 30,000 sites

PayPoint Plc has on Thursday has announced a robust financial performance for the half year ending 30 September, making continued progress towards achieving an underlying EBITDA of £100 million by the end of FY26.

The company’s UK retail network increased to 30,151 sites during the period, from 29,149 at the end of the previous fiscal year. 70 per cent of these are independent retailers, and the rest in multiple retail groups.

Keep ReadingShow less
Johnson & Johnson office

Johnson & Johnson office in Irvine, California

Photo by Mario Tama/Getty Images

Johnson & Johnson risks UK lawsuit over talc cancer claim

UK claimants announced Wednesday legal action against US pharmaceutical and cosmetics giant Johnson & Johnson, alleging that women diagnosed with cancers were exposed to asbestos in the company's talcum powder.

J&J risks UK court action for the first time over the allegations, having faced a series of similar lawsuits in North America.

Keep ReadingShow less
Glebe Farm Foods: 'best-in-class' for Food Safety Standards

Glebe Farm Foods: 'best-in-class' for Food Safety Standards

Glebe Farm Foods has announced that its site has been awarded AA+ grade following the recent unannounced audit against the BRCGS V9 standard.

The BRCGS Global Food Safety Standard is a globally recognised certification program designed to ensure the safety, quality, legality and authenticity of food products. This was the first unannounced audit for the site and included all the production facilities; de-hulling, flaking and flour, oat drink manufacturing and Tetrapak filling, and new to the scope was the manufacturing and packing of Granola.

Keep ReadingShow less