The UK economy contracted by a record 9.9 per cent last year as the coronavirus crisis shut down several industries.

Figures from the Office for National Statistics reveal this is more than twice the fall in 2009.

Monthly gross domestic product increased by 1.2 per cent during December last year but remained 6.3 per cent below pre-pandemic February 2020 levels.

Services activity increased in the first half of December following the relaxation of business restrictions, which had negatively affected November 2020.

But measures were soon tightened again. In the October to December quarter, the economy grew by 1 per cent.

Responding to today’s figures from the ONS, Quilter Investors portfolio manager Hinesh Patel says: “It is fair to say the UK economy experienced an annus horribilis in 2020 as it experienced a trifecta of a public health crisis, economic lockdowns and continued uncertainty around Brexit. Given the November lockdown it is no surprise to see the recovery in UK growth subdued once again quarter-on-quarter and everyone will be happy to see 2020 well behind them now.

“However, 2020 is in the past and the UK arguably has a promising second half of the year ahead given the success of the vaccine rollout. This could easily be derailed should one of the mutations prevent the vaccines properly taking effect, but for now a double dip recession has been avoided and soon lockdowns may potentially be the thing of the past.

 “This does not mean every business is going to thrive in 2021, and the economy is clearly going to show signs of scarring for a considerable period of time. However, what it should mean is that the successful and competitive companies should respond to the return in consumer demand and begin to push economic growth back to more welcomed levels.

“It will be crucial to watch how the government responds. With a budget coming up and support schemes due to expire soon, they need to make sure they do not prematurely choke off the recovery.”