LONDON – The British economy shrank 2.9% in January as the nation was hit by a new round of coronavirus restrictions and Brexit slashed exports to the European Union.
The Office for National Statistics said Friday that the drop in gross domestic product was fueled by declines in retail trade and education as efforts to slow the spread of COVID-19 shut nonessential shops and schools across the U.K.
Britain’s economy is about 9% smaller than it was before the coronavirus pandemic began in February 2020, the ONS said. Manufacturing declined for the first time since April, driven by a drop in exports as the nation felt the full effects of its departure from the EU for the first time after transitional arrangements ended Dec.