UK is heading for double dip recession as GDP fall by 2.6%
Tuesday, January 19, 2021
Britain's economy is headed for a dual-dip recession after the most recent official figures confirmed another collapse in November that was fueled by the first lockdown-the largest in history-plunging the United Kingdom into what economists are seeing as two successive quarters of sinking GDP.
The single biggest contributors to the fall in November were hospitality, followed by wholesale and retail, other services and the arts, entertainment and leisure as restrictions were reinstated in some parts of the UK.
Analysts said many firms had adjusted well for the freeze starting on November 5 and extending until December 2.
Anneliese Dodds, the shadow chancellor, said Britain already had seen the worst recession of any major country and risks a "devastating double dip" in 2020.
The all-important services sector is now 9.9% off the level in February 2020 prior to the pandemic hitting Britain.
The latest British business figures revealed that pubs and hairdressers suffered the greatest impact during the second UK closure in November, when the hospitality industry was forced to close or run only as a snack bar.
Association of Royal British Chambers of Commerce chief executive Suren Thiru said: "The latest figures highlight the continued damage being done to the UK economy by coronavirus.