United Kingdom Suffers Worst Annual Contraction Since Year 1709


David Madden of CMC Markets commented on the slump saying:

“The preliminary reading of fourth-quarter GDP will be published at 7 am (U.K. time), economists are expecting to see 0.5% on a quarterly basis, which would be a big fall from the 16% growth registered in the third quarter.”

“Services account for approximately 70% of the UK’s economic output. The services PMI levels in October, November, and December were 51.4, 47.6, and 49.4 respectively. A reading below 50.0 means negative growth. Clearly, tougher restrictions introduced from November onwards dented the all-important industry. Given the uncertainty that existed in relation to the U.K-EU trading relationship at the back end of 2020, there could have been stockpiling of goods.” He added.

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United Kingdom restrictions have no end date

As of this writing, the United Kingdom recorded over 4 million corona-virus cases, while the death toll surpassed 115,000. According to Johns Hopkins University, the country’s high contaminations and deaths are caused by the more contagious virus variant.