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UK economy shrank by less than expected 2.9% in January

12 March 2021 12:24 (UTC +04:00)

Britain’s economy shrank by a less severe than expected 2.9% in January from December as the country went back into a coronavirus lockdown, official data showed on Friday, APA reports citing Reuters.

Economists polled by Reuters had expected a contraction of 4.9%.

Britain’s economy is likely to shrink by 4% in the first quarter of 2021, due mostly to the latest lockdown but also because of disruption caused by new, post-Brexit rules for trade with the European Union, the Bank of England said last month.

“The economy took a notable hit in January, albeit smaller than some expected, with retail, restaurants, schools and hairdressers all affected by the latest lockdown,” Jonathan Athow, an Office for National Statistics statistician, said.