UK’s economy shrinks by record 20.4 percent in April
According to the Office of National Statistics, Britain’s economy has shrunk by 24.5 percent in comparison to April 2019.
The United Kingdom’s economy shrank by record 20.4 percent in April, amid strict lockdown to combat COVID-19, revealed official data on June 12, 2020.
The record slump in the economy is likely to be the low point before a long and slow recovery, as Britain readies to open up its economy.
The Office of National Statistics stated that the gross domestic product of Britain contracted by 10.4 percent in the three-month period till April in comparison to the previous three-month period.
• A latest poll of economists had produced median forecasts for a monthly fall of 18.4 percent and a contraction 10.0 percent in GDP in the February-April period.
• According to the Office of National Statistics, Britain’s economy has shrunk by 24.5 percent in comparison to April 2019.
• The output of the dominant services sector fell by 19.0 percent in April from March while manufacturing was down by more than 24 percent and construction fell by almost half.
• The Bank of England and the country's budget office have issued warnings that Britain could be headed for its deepest recession in the last three centuries this year.
• The Organisation for Economic Co-operation and Development also stated that Britain was on course for the worst downturn among the countries, as economic forecast predicts its economy to contract by 11.5 percent in 2020.
Economic recovery to follow soon?
UK Finance Minister Rishi Sunak stated that COVID-19 is having a severe impact on Britain’s economy in line with many other economies in the world. He, however, stated that government measures including a scheme to pay workers who have been temporarily laid off, alongside grants, loans and tax cuts for companies indicate that Britain has the best chance of reviving its economy as soon as it reopens.
Britain’s retail sector is due to reopen next week with a strict social distancing protocol.