A recession brought on by the global coronavirus pandemic has led to the biggest fall in quarterly GDP on record in the United Kingdom(UK).
Analysts are still figuring out how badly the COVID-19 lockdown hit the UK economy or whether it is on recovery.
The latest GDP report shows that activity slumped dramatically in April-June, plunging the UK into a technical recession.
The slump is expected to be deeper than in many other advanced economies.
Economists predict that GDP contracted by around 21% in the second quarter, following a 2.2% fall in Q1. This is seen as the deepest quarterly slump on record, putting the UK on track for its worst year in decades.
The US and the Eurozone are already in recession with the Global economy also experiencing its worst decline since the 1930 Great Depression.
Interestingly, China which is the source of the COVID-19 pandemic has managed to pull out of slow growth in the second quarter.
This drop in UK’s economic performance is the worst for any major economy in Europe, blamed on stiff lockdown and harsh restrictions.
Much of the damage was done in April after the government forced offices, shops and factories to shut, to slow the virus’s spread.
Economists predict a growth of around 8% during June, which would be an improvement on the meagre 1.8% recorded in May, compared to a 20.3% slump in April.
A recession is defined as a significant decline in economic activity in two consecutive quarters and could last for months or years.
After a decline of 2.2% in the first quarter, the figures confirm the UK economy plunged into recession after the outbreak spread in March and the government imposed a nationwide lockdown to contain it.
Economists consider two consecutive quarters of shrinking GDP as the technical definition of a recession.
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