Third lockdown caused UK economy to shrink by more than expected

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Third lockdown caused UK economy to shrink by more than expected
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Third lockdown caused UK economy to shrink more than expected

GDP fell by more than first thought during the third coronavirus lockdown, according to the ONS- its pre-pandemic level, between October and December 2019.

This decides how much it will charge banks to lend them money, and is a way to try to control inflation and the economy. The strain is more transmissible and it became the dominant one as the UK kicked off their vaccine programme. However, the latest data shows that households typically saved more cash during the same time frame, putting 19.9% of their income into savings.Jonathan Athow, deputy national statistician at the ONS, said: "Today's updated GDP figures show the same picture as our earlier estimate with schools, hospitality and retail all hit by the re-imposition of the lockdown in January and February, with some recovery in March.

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