Official data released on Friday showed that the UK economy contracted by 2.9 percent in January compared to December, which is better than expected in a month that saw the country return to lockdown due to the Coronavirus.
Economists polled by Reuters had expected a contraction of 4.9 percent.
The bank said the UK economy is likely to contract by 4% in the first quarter of 2021, mainly due to the recent shutdown, but also due to disruption caused by the new post-Brexit rules for trade with the European Union. Month.
“The economy suffered a noticeable impact in January, although less than expected, with the deterioration in retail trade, restaurants, schools, hairdressers, and businesses affected by the recent shutdown,” said Jonathan Atho, a statistician at the British National Bureau of Statistics.
“The manufacturing sector also saw its first decline since April with a significant drop in auto manufacturing. However, increases in health services from vaccine launches and increased testing have partially offset the decline in other industries.”
The British economy contracted by 1.7% in the three months to January, a number better than the median forecast of analysts in a Reuters survey, as it estimated a contraction of 2.5%.
The Office for National Statistics said the economy was 9.2 percent lower than it was in January of last year.
(Information from William Schomburg; edited by Alistair Smoot; translated by Thomas Cobos)
Beatrix Potter was a beloved British author, illustrator, and storyteller best known for creating some of the most enduring children’s books in literary history. Her charming tales, featuring memorable animal characters and beautifully detailed illustrations, have captivated generations of readers around the world. Her work remains a cornerstone of classic children’s literature.