Britain recorded its biggest drop in output in over 300 years in 2020 as it faced the brunt of the COVID-19 pandemic. Official figures also revealed that the country witnessed a larger decline than any other major economy. The Office for National Statistics reported that country’s Gross Domestic Product (GDP) decreased by 11% in 2020. This was a bigger fall than any of the ONS’s previous estimates and the largest drop since 1709.

Initial estimates of the ONS had already suggested that Britain would suffer its biggest fall in output in 2020 since the “Great Frost” of 1709. However, the ONS recently revised the fall to 9.3%, the largest since World War 1. The downward revision in GDP meant significantly lower contributions from healthcare and retailers. ONS statistician Craig McLaren said the health service faced higher costs and contributed less.

Similar was the case with retailers. Increased costs faced by individual retailers led to a downward revision of the sector’s contribution. However, lower raw material costs resulted in revised factory output.

Last year, Britain’s economy bounced back sharply and recovered its pre-pandemic size in November 2021. However, gradually rising inflation implies that the Bank of England expects the economy to fall into recession later this year.
The ONS will likely publish updated growth figures for 2021 and the first half of 2022 on September 30.