GDP falls 2.6% in November
Data from the Office for National Statistics (ONS) shows GDP fell by 2.6% month-on-month in November, with the decline pushing the economy toward a double-dip recession. GDP fell to 8.5% below its pre-pandemic level in November, with the slide driven by the second national coronavirus lockdown in England. Analysis shows that GDP dipped 3% in the first three months of 2020 before registering a record 19% fall in Q2 – a period that saw the UK in its first nationwide coronavirus lockdown. While Q3 saw a record jump of 16% as growth returned, analysts expect Q4 to see another dip. With tough new restrictions currently in place, Q1 2021 is forecast to show a decline, meaning two consecutive quarters of falling GDP and a second recession. Chancellor Rishi Sunak said the ONS figures highlight the scale of the challenge being faced, saying: “It’s clear things will get harder before they get better”. Suren Thiru, head of economics at the British Chambers of Commerce, believes a “clear and comprehensive plan is urgently needed to support the economy throughout this year.”
Motorsport businesses have been especially hard hit by the decline in economic activity and are looking forward to an economic recovery in 2021.