Lockdown, Trade Woes Stunt UK Economy Ahead Of 2021 Recovery

• Britain's economy has endured a torrid start to 2021, hit by a new COVID-19 lockdown and disruption caused by the country's less open trade relationship with the European Union.
• While better days are ahead, Bank of England officials meeting ahead of Thursday's monetary policy announcement must weigh up the likely strength of the recovery, the lasting damage caused by the pandemic, and how much inflation might result.
• The latest official data showed Britain's economy contracted in January, although not by as much as feared by some economists. Output remained 9% below its level in February 2020.
• Tax office estimates of the number of employees on payrolls showed tentative signs of recovery in January. But they remain more than 700,000 below the pre-pandemic norm.

(Source: Reuters)