THE UK economy plunged by 19.8% between April and June – but it’s not as bad as had been feared, according to the Office for National Statistics (ONS).
Gross domestic product (GDP) had been predicted to shrink by 20.4% at the height of lockdown when the majority of businesses were forced to close to stop the spread of Covid-19.
The economy shrunk by 19.8% during April and June this yearAlthough the tumble wasn’t as bad as it could have been, it’s the largest quarterly contraction in the UK economy since records began in 1955.
The ONS revised its estimate on the previous quarter too and found that the economy crashed by 2.5% in January to March, rather than 2%.
The UK still faces the largest recession after two consecutive quarters of falling GDP.
Compared with the same months last year, GPD fell a huge 21.5%.
Industries including services, production and construction dropped dramatically during the months of lockdown as they were hit hardest by the government’s restrictions.
The ONS said: “While it is still true that these early estimates are prone to revision, we prefer to focus on the magnitude of the contraction that has taken place in response to the coronavirus pandemic.
“It is clear that the UK is in the largest recession on record.
“The latest estimates show that the UK economy is now 21.8% smaller than it was at the end of 2019, highlighting the unprecedented size of this contraction.”
More to follow…
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