January was the first month in which new trade relations entered into force after Britain’s definitive exit from the EU market. At the same time, the statistical office stated that in addition to the end of the transitional period, when the old treaties with the EU were still in force, the third closure of the economy introduced due to the pandemic is also to blame.
Industrial production also fell by 1.5 percent in January. Analysts estimated that compared to December, when it increased by two percent, it will now fall by only one percent. Year-on-year, industrial production decreased by 4.9 percent.
The statistical office also published data on the January performance of the entire economy. Gross domestic product (GDP) fell 2.9 percent in January compared with the previous month, while analysts in the Reuters poll expected a decline of 4.9 percent on average.
Compared to the situation before the start of the pandemic, the volume of the British economy is nine percent smaller. The British Central Bank estimates that GDP will fall by four percent in the first quarter.
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