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2021.02.1212:05:00UTC+00UK GDP Set To Contract More Sharply In Q1: NIESR

The UK economy is set to contract more than the previous projection as stringent Covid-19 restrictions are expected to remain elevated until early spring, along with the effects of post-Brexit adjustment, the National Institute of Social and Economic research said Friday.

Gross domestic product is forecast to decline 3.8 percent in the first quarter, instead of 3.4 percent estimated last month.

"Nevertheless, growth will pick up from the second quarter onwards as restrictions ease on the back of a successful vaccination programme," Kemar Whyte, a senior economist at NIESR, said.

Earlier this month, the think tank downwardly revised the UK's growth outlook for 2021 to 3.4 percent from 5.9 percent, citing the resurgence of Covid-19.

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