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Britain Enters Recession As GDP Slumps By A Record 20.4% In Q2

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In the wake of strict coronavirus curbs enforced between April-June period the economic output of UK contracted by a steep 20.4%. This is the highest decline in GDP logged by any key nation thus far as per official data published today. Also, with contraction reported for the second consecutive quarter, the world's sixth leading economy has officially entered into recession.

 Britain Enters Recession As GDP Slumps By A Record 20.4% In Q2
 

Nonethelesss, the month of June witnessed some recovery with GDP growing by 8.7% from May, said the Office for National Statistics.The output level in the month of June was 16.8% below its level a year ago, in comparison to a 23.3% decline in May.

"The recession brought on by the coronavirus pandemic has led to the biggest fall in quarterly GDP on record," Jonathan Athow of the Office for National Statistics said. "The economy began to bounce back in June... Despite this, GDP in June still remains a sixth below its level in February, before the virus struck."

In the previous week, the Bank of England estimated that the UK economy would get back to its earlier scale by the last quarter of 2021, and also cautioned that unemployment will rise significantly.

"Today's figures confirm that hard times are here," finance minister Rishi Sunak said. "Hundreds of thousands of people have already lost their jobs, and sadly in the coming months many more will."

In the first quarter, British GDP contracted by 2.2%, being impacted by the lockdown that began on March 24.

GoodReturns.in

Read more about: economy gdp
Story first published: Wednesday, August 12, 2020, 16:33 [IST]
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