UK plunges into deepest ever recession as GDP tumbles 20%


the uk economic system is officially in recession for the primary time since the monetary situation ten years ago.

The economy plunged with the aid of 20% between April and June because the pandemic shuttered companies and saved people locked up at home. GDP had fallen by way of 2.2% between January and March.

About plunges

UK plunges into deepest ever recession as GDP tumbles 20%

About deepest

A recession is outlined as two successive quarters of decline in GDP, which has now not been considered within the UK since 2008 and 2009 throughout the financial challenge.

There was some pick in June because the economy emerged from lockdown. GDP picked up by eight.7% within the month.

UK plunges into deepest ever recession as GDP tumbles 20%

All parts of the united kingdom economy had been hit, together with the services and products sector which dropped by means of 20%.

The ONS stated: “this is the largest quarterly contraction within the UK financial system due to the fact that ONS quarterly data began in 1955, and reflects the ongoing public well being restrictions and kinds of voluntary social distancing that have been put in location according to the coronavirus pandemic.

“In level phrases, real GDP used to be closing decrease in Quarter 2 2003. when put next with the identical quarter a yr in the past, the united kingdom financial system fell by 21.7%.”

compared to different nations the united kingdom fared slightly higher than Spain, which was once down 23% over the length, but worse than the united states which dropped by means of eleven%. the uk additionally performed worse than France, Italy and Germany over the 2nd quarter.

only Spain performed worse than the united kingdom

The ONS brought: “The greater contraction of the united kingdom economic system basically displays how lockdown measures had been in situation for a bigger a part of this period in the UK when put next with these different economies. The coronavirus pandemic and the response to it has impacted the worldwide financial system, with file declines recorded in all of those nations.”

It comes after the day before today ONS knowledge confirmed around 730,000 UK workers had been faraway from the payrolls of British corporations given that March when the coronavirus lockdown began in an indication of the toll taken on the financial system by means of the pandemic.

the biggest recession ever recorded

Jonathan Athow, deputy national statistician at the ONS, mentioned: “The recession caused by the coronavirus pandemic has ended in the biggest fall in quarterly GDP on file.

“The economic system started to leap again in June, with stores reopening, factories beginning to ramp up manufacturing and home-building persevering with to recuperate.

“regardless of this, GDP in June still remains a sixth beneath its degree in February, before the virus struck.

“general, productivity noticed its largest-ever fall within the 2d quarter. Hospitality was worst hit, with productivity in that business falling via three-quarters in up to date months.”