The UK’s economic slump was the largest among the G7 countries, and the latest downward revision makes it worse than that of Spain.
Written by Drago Bosnic, independent geopolitical and military analyst
The United Kingdom is currently going through the sharpest economic contraction in the last 313 years. According to Reuters, this is the country’s worst recorded fall in output in more than three centuries. Since 2020, the UK broke this unflattering record multiple times, first after it faced the severe consequences of the COVID-19 pandemic, then after the fallout of the suicidal anti-Russian sanctions started to kick in.
Curiously, this contraction is a far larger decline than is the case in any other major Western economy, updated official figures showed on Monday. GDP (gross domestic product) fell by 11.0% in 2020, the Office for National Statistics (ONS) said. This was a bigger drop than any of the ONS’s previous estimates and the largest fall since 1709, according to historical data hosted by the Bank of England.
The UK statistics experts regularly update GDP estimates as more data becomes available. The ONS’s initial estimates had already suggested that in 2020 the UK suffered its biggest fall in output since the “Great Frost” of 1709. But more recently the ONS had revised down the scale of the fall to 9.3%, the largest since just after World War One. According to Reuters, even before the latest revisions, the UK’s economic slump was the largest among the G7 countries, and the latest downward revision makes it worse than that of Spain, which recorded a 10.8% fall in economic output. However, the ONS advised against drawing direct comparisons with other Western economies, as most – with the likely exception of the United States – had “not yet undertaken the same type of in-depth revisions as the UK had.” The downward revision in GDP reflected lower contributions from healthcare and retailers than previously thought, the report says.
“The health service faced higher costs than we initially estimated, meaning its overall contribution to the economy was lower,” ONS statistician Craig McLaren said.
According to the report, the ONS had already factored in a fall in routine care provided by the UK’s troubled NHS (National Health Service) as it focused on treating COVID-19 patients and limiting the spread of the disease in hospitals. A closer look at the increased costs faced by individual retailers also led to a downward revision of the sector’s contribution, while factory output was revised up to take account of lower raw material costs. The UK economy bounced back sharply last year and recovered its pre-pandemic size in November 2021. But fast-rising inflation means the Bank of England expects the economy will slip back into recession later this year, the report concludes.
The UK is hardly the only Western power with severe economic output problems. The European Union, which the UK formally left on 31 January 2020, is also going through a tremendously difficult economic and financial crisis. This is also affecting many other countries around the globe, regardless of whether their economies are more or less integrated with those of other European countries or the EU itself. Sanctions aimed against Russia are already wreaking havoc in many, if not most Western economies.
Although the political West was initially confident the sanctions would work, in time, the belligerent power pole started losing this misplaced self-confidence. As the Kiev regime kept suffering defeats, and despite a massive media campaign to portray it as winning, people in the West became less enthusiastic. This worsened after sanctions started affecting the West more than Russia itself. Western leadership tried spinning the narrative, claiming sanctions supposedly had no boomerang effect, but that “Russia’s unprovoked, brutal invasion” was the reason behind everyone’s troubles. In June, an LA Times column, authored by Doyle McManus described his experience after visiting Europe. The columnist was in Italy to see how sanctions affected life in Europe:
“It wasn’t hard to find the effects. You’re unhappy about $5 a gallon for gas? Try $8. ‘It’s painful filling the tank,’ my friend Roberto Pesciani, a retired teacher, moaned. Utility bills? The cost of natural gas is four times higher in Italy than in the US. ‘Heating prices are up. Grocery prices are up. Everything’s going up,’ Pesciani said. The worries go beyond inflation. Italy’s foreign minister, Luigi Di Maio, warned recently that Russia’s blockade on Ukraine’s grain exports could spark a global bread war, producing famine in Africa and a new wave of migrants heading for Europe. ‘The problem with sanctions on Russia is that they will only work if they hurt us too,’ Pesciani observed.”
If we ignore false narratives, such as the supposed “blockade” of Ukrainian ports by the Russian Navy, the problems mentioned in this short interview are currently plaguing tens or likely hundreds of millions of people in Europe. As a result, the so-called “Ukraine unity myth” is slowly but surely starting to crumble in most Western states, particularly EU members.
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I consider Reuters to be a voice of the enemy. SF should be ashamed to base an article on “information” from Reuters. That news outlet is insidious, mixing truth and propaganda so as to have a subliminal impact. Needless to say, I didn’t read past the first sentence. I do not like to be brainwashed, thank you.
Reuters have monkeys in their anus and should be imploded forever !!!!
Actually it makes VERY good sense to base your article on Reuters. That way Southfront’s critics cannot dismiss it outright as Russian propaganda. That is why independent journalist Tim Pool always uses certified Newsguard sources for his videos. If it’s from the MSM then his critics must address the issue, not dismiss it outright as coming from an easily ignored source.
How hilarious are these European idjuts who aim to cut Russians profiting from its oil and gas export activities, the same Russian gas that their industries breathe to sustain functionality. Madness is an understatement because Russian gas buyers are queueing at Moscow doorstep whereby EU will freeze in winter weather with soon bankrupt economies considered as suicide for refusing to accept gas running through a new gas pipeline of NS2. Well we’re about to see the disintegration of EU very soon and perhaps the collapse of NATO trapped in the deep of the pit they dug themselves. Have fun and enjoy your joyous sanctions.
the prostipute dracul queen of nazis spent to much Gaz by the anus in her pedo party for royal pedos !!! now its your fault !!! more Jubileuns for psico abortions !!!
eat the anus of the queen its save its nazi jubileum !!!!
The Russian ruling class really don’t grasp economic reality. They don’t seem to understand that the West is “blessed” with an unlimited ability to deficit spend money that is created and loaned by the US Central Bank. The West can not run out of money, it is up the multi polar world to stop accepting US Central Bank notes as currency. Refusing the USD in international transactions is the only way to defeat the West economically. Selling the West gas and oil in exchange for rubles that can’t be spent internationally certainly won’t do anything to harm the West.
SCO – China- India- Iran doing business involving the Ruble and much more to the point US $$ =worthless -“promise to pay ” that’s all same with US bonds -worthless .
Ruble is backed by Commodities like GOLD- minerals -etc that’s why the Ruble recovered .
You fail to mention US in more than $30 TRILLION in debt and that’s why inflation in the USA went u BEFORE the Ukraine problem – this hits the poor in the USA even the middle class are in trouble .
Biggest US debt ??= medical bills – Big Medical– Big Pharma OWN most Americans – cant afford drugs ?? then die cant afford that operation – to bad .
Also you never mention MIR now being used in transactions and IF you are really Russian then you know Russia has its OWN internet ready in case the USA cuts it off.
All you do is put down Russia just a bit more subtle than the Paid Posters.
Give me your version of Russia that you would like — if you dare ??
Boris Yeltsin -sold out ton the USA/CIA
Western currencies are incredibly weak, as the US and EU central bank have been printing money like it’s going out of fashion tomorrow. That’s why inflation was already high before the Ukraine war. As it stands the US dollar is only being propped up by inertia, the US military taking out dissenting nations and Saudi Arabia demanding that oil gets paid for in dollars. The Euro has no such things propping it up. The Greek debt crisis almost brought it crashing down, which is why the ECB has been printing money like crazy to buy up bad debt from the Southern Euro countries. A small nation like Greece defaulting is one thing, Spain or Italy defaulting, it would be the end of the Euro.
But you can print more money, it will only be worth less. Economic growth was minimal before covid and with almost negative interest especially pension funds were hard pressed to make enough money to make pension payments meet. If the ECB or US Fed keep up the printing high inflation could turn into hyperinflation. And you only need to ask Argentina what happens to a country economically when that happens. Argentina today is actually poorer then it was a century ago.
What would unlimited money be good for if there is nothingbto buy with those money? No industry, nothing to buy…
I’m surprised the Pound is still holding up with the exchange rate. -11% GDP is a huge drop, their currency should be in the crapper along with the Euro.
Not up to date Vanya == £1 sterling = $1.17 – going down nearly equal.
Banking and other financial mechanism are under their manipulative control and remain profitable using illusionary tricks although the odds are all heading southward, on a side note, most of the nations got stuck on blind faith honoring the worthless USDollars as means to settle commercial transactions on products and services. BRICS should lead the world by ditching the western bloc currencies favoring the Yuan, Ruble, and Rupee.
I reckon the Pound is holding up because the US Fed and the ECB have been printing way way WAY more money then the UK Treasury. Which makes the Dollar and the Euro worth less then the Pound.
They are planning for blackouts in the UK and EU (some of the EU countries)…
It has nothing to do with “the pandemics” but with CRIMINAL RESTRICTIONS IMPOSED BY WEF SLAVES WORKING IN THE STATE BEAUROCRACY.
BE PROPER AND WRITTE THE TRUTH: THE STATE APPARATUS BROUGHT THE CRISES NOT COVID.
It is impossible for a peacetime is more destroying than in wartimes, especially in uk, since 1700s means we counted a lot of global devastating wars, southfront ahould be more careful picking their workers