UK January GDP Down 2.9%... EU Exports Down 41% Since Brexit

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The UK's monthly growth rate has turned negative again due to the impact of restrictions related to the COVID-19 pandemic.

The UK Office for National Statistics (ONS) announced on the 12th (local time) that the Gross Domestic Product (GDP) in January decreased by 2.9% compared to the previous month.

This marks a return to negative monthly GDP growth after a 1.2% increase in December last year, influenced by the easing of restrictions in some regions ahead of the Christmas holidays.

Compared to January last year, before the impact of COVID-19 hit the UK, the GDP size has decreased by 9.2%.

The ONS analyzed, "All four regions of the UK had various restrictions in place in January, and these measures reduced economic activity."

The service sector saw the largest decline at -3.5%, followed by the manufacturing sector at -2.3%, and the production sector at -1.5%. In contrast, the construction sector grew by 0.9%.

Chancellor of the Exchequer Rishi Sunak stated in a released statement that "As we wrestle with new variant viruses, COVID-19 continued to affect our economy at the beginning of the year."

Meanwhile, in January, when the UK officially left the European Union (EU), imports and exports between the UK and the EU sharply declined.

In the first report card received after the Brexit transition period ended, goods exported to the EU decreased by 40.7%, and goods imported from the EU decreased by 28.8%.

The ONS explained that the reduction in trade between the UK and the EU may be due to confusion that occurred toward the end of the transition period.

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