Business

UK economy drops by 2.9% in January due to COVID-19 restrictions

Picture used for illustrative purpose. File

Gulf Today Report

Britain’s economy contract by 2.9 per cent in January following lockdown in various parts of the country.

According to the Office for National Statistics, the gross domestic product fell after recording 1.2 per cent growth in December

"Government restrictions reduced economic activity," the ONS said.

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The economy was also 9.0 per cent smaller than its pre-pandemic level in February 2020.

Reduction of activities in education and consumer-facing industries dragged down the contraction in the services sector by 3.5 per cent.

The coronavirus crisis sparked a 10-per cent collapse in the economy last year -- its worst performance in more than three centuries.

So far the UK has vaccinated 23 million people with at least the first dose of the vaccine.