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UK officially in recession for first time in 11 years due to Coronavirus

The UK economy suffered its biggest slump on record between April and June as coronavirus lockdown measures pushed the country officially into recession.

The economy shrank twenty point four percent compared with the first three months of the year.

Household spending plunged as shops were ordered to close, while factory and construction output also fell.

This pushed the UK into its first technical recession – defined as two straight quarters of economic decline – since 2009.

The Office for National Statistics (ONS) said the economy bounced back in June as government restrictions on movement started to ease.

Jonathan Athow, deputy national statistician for economic statistics, said: Despite this, gross domestic product (GDP) in June still remains a sixth below its level in February, before the virus struck.

The Office for National Statistics ONS said the collapse in output was driven by the closure of shops, hotels, restaurants, schools and car repair shops.

The services sector, which powers four-fifths of the economy, suffered the biggest quarterly decline on record.

Factory shutdowns also resulted in the slowest car production since 1954.

The economic decline was concentrated in April, at the height of lockdown.

On a month-on-month basis, the economy grew by 8.7% in June, building on growth in May.

Despite this, UK Chancellor Rishi Sunak said the economic slump would lead to more job losses in the coming months.

He said Hundreds of thousands of people have already lost their jobs, and sadly in the coming months many more will.

The UK’s slump is also one of the biggest among advanced economies, according to preliminary estimates.

 

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