UK economy suffers record 9.9% slump in 2020

Britain's economy is feeling the chill.

Growth suffered a record 9.9% slump in 2020.

That's the biggest annual crash in output in over 300 years.

It was also the worst performance by any major economy bar Spain, which was also battered by lockdowns.

And the pain is far from over.

The Bank of England reckons the economy will shrink another 4% in the first three months of 2021.

Brexit disruption is adding to the effects of a new lockdown.

The hospitality sector looks hardest hit, with pubs and restaurants largely shut.

There is hope on the horizon, however.

Britain has vaccinated more people than any other European country so far.

Households are also sitting on huge piles of enforced savings after being made to stay home.

Some of that money should start flowing back into economy when lockdowns are lifted.

Many economists expect a vigorous rebound later in the year as a result.

Even so, the central bank thinks it will be early 2022 before the economy regains its pre-crisis size.