The UK economy stagnated in January 2020. This suggests that the economic recovery after Boris Johnson’s victory in the parliamentary vote in December was short-lived. According to the data, inertia has diminished even before fears of the coronavirus hit the country in February.

The UK’s gross domestic product remained unchanged in January compared to December figures, when it reported a 0.3% increase, according to the National Statistics Service. On the other hand, analysts expected a 0.2% increase in the indicator.

The report came out shortly after the leadership of the Central Bank of England reduced the reference institutional interest rate by half a percentage point to 0.25% and announced measures to maintain credit stability. The government is preparing to announce its own stimulus package.

Central bankers have warned that the epidemic will weaken the economy. Some analysts expect production to shrink in the second and third quarters of the year.

The UK economy has stagnated on a quarterly basis for the third consecutive reporting period. This is the longest time the country has been stagnant since the end of the financial crisis in 2009.

A separate report shows that the UK’s trade deficit rose to 3.7 billion GBP (4.7 billion USD) in January, amid a 6% drop in exports.