UK Economy Records Negative Growth for the First Time in 7 Months Due to COVID Re-lockdown

[Asia Economy Reporter Kiho Sung] The UK economy recorded negative growth for the first time in seven months due to the novel coronavirus infection (COVID-19). This is analyzed to be the result of the reintroduction of lockdown measures.

The UK Office for National Statistics (ONS) announced on the 15th (local time) that the gross domestic product (GDP) in November last year decreased by 2.6% compared to the previous month.

The UK economy experienced positive growth for six consecutive months after the first COVID-19 lockdown took full effect in April last year, with a -19.5% decline. However, after growth slowed in September (1.1%) and October (0.6%), it eventually turned to negative growth in November.

This was due to the second lockdown imposed for four weeks in November last year in response to the resurgence of COVID-19. The service sector shrank by 3.4% due to the closure of non-essential businesses, leading to an overall contraction in GDP.

Furthermore, as the spread of COVID-19 has not stopped, the UK government has implemented a third lockdown since the beginning of this year. The third lockdown is expected to be in effect at least until March. Additionally, with the UK completely severing ties with the European Union (EU) starting this year, trade disruptions are anticipated, causing further negative impacts.

This content was produced with the assistance of AI translation services.