UK Economy Slumps into Recession

The ONS has confirmed that the UK economy has entered recession, which is two consecutive periods of negative growth. The GDP slumped by 20.4% in the second quarter of 2020, substantially higher than the 10.1% fall in GDP in Germany and the 13.8% fall in France.

The ONS said:

“UK gross domestic product (GDP) is estimated to have fallen by a record 20.4% in Quarter 2 (Apr to June) 2020, marking the second consecutive quarterly decline after GDP fell by 2.2% in the previous quarter. This is the largest quarterly contraction in the UK economy since Office for National Statistics (ONS) quarterly records began in 1955, and reflects the ongoing public health restrictions and forms of voluntary social distancing that have been put in place in response to the coronavirus (COVID-19) pandemic. In level terms, real GDP was last lower in Quarter 2 2003. Compared with the same quarter a year ago, the UK economy fell by 21.7%.”