National Institute of Economic and Social Research (NIESR) reported on Friday its estimates revealed the UK’s economy is to decline by 3.8 percent in the first quarter of 2021 instead of 3.4 percent estimated in January, as stringent Covid-19 restrictions are expected to remain elevated until early spring, along with the effects of post-Brexit adjustment. Nevertheless, growth will pick up from the second quarter onwards as restrictions ease on the back of a successful vaccination program, the report added.

It was also noted that the ONS statistics published this morning revealed the UK economy grew 1.0 percent growth in the fourth quarter of 2020, consistent with annual contraction of 9.9 percent, which is likely to be the largest annual fall among G7 countries last year and matched NIESR’s last month forecast.