Not since 1709 has the British economy suffered a blow of such magnitude.
The Gross Domestic Product (GDP) of the United Kingdom suffered in 2020, the first year of the coronavirus pandemic, a contraction of the 11%are biggest drop in over 300 yearsaccording to figures updated this Monday by the British Office for National Statistics (ONS).
The organization, which estimated until now that the blow to the economy that year was 9.3%, maintains that a similar decline had not been recorded since 1709.
The damage was especially serious in the second quarter, when the Government imposed the most severe restrictions to prevent contagion, which paralyzed large economic sectors and punished GDP with a 21% decrease, compared to 19.4% in previous calculations.
The ONS has reworked its figures from more detailed data from annual business surveys and other administrative reports.
“Now we are able to measure the costs incurred by companies directly and make adjustments to prices – deflation – at a much more detailed level,” the agency said.
Inflation
A few days ago, in addition, the ONS reported that in the country the consumer price index (CPI) stood in July at 10,1%compared to 9.4% in the previous month, which places it at the highest level in more than 40 years.
The increase was mainly due to increase in electricity and gasas well as transportation, food prices and non-alcoholic beverages.
Food prices increased notably, particularly bakery products, dairy products, meats and vegetables. The prices of other basic items, such as toothbrushes and deodorants.