According to the Office for National Statistics (ONS), goods exports from the United Kingdom to the European Union dropped by 40.7% in January while imports fell by 28.8%, marking the largest drop since records began in 1997. The ONS says that the drop is partially attributed to the new trading rules between the UK and EU coming onto force, though imports and exports are expected to rise as companies adjust to comply with the new regulations. In addition to the new UK-EU regulations, a third lockdown has contributed to the UK economy shrinking by about 2.9% in January. Sectors such as retail, restaurants, tourism, and entertainment venues have been particularly affected by lockdowns. As of now, the UK economy is roughly 9% smaller than it was prior to the start of the SARS-CoV-2 pandemic.
Several prominent UK companies attribute the drop of trade with the EU in part due to Brexit. Some of the most affected goods entering the UK include heavy machinery, medicinal and pharmaceutical products, and transport equipment such as cars. While exports fell by 5,600,000,000 (about 7,800,000,000 United States dollars) pounds and imports dropped by 6,600,000,000 pounds (about 9,200,000,000 USD), the UK's trade with non-EU nations increased by about 1.7% in January of 2021.
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