The nation’s economy bore the brunt between April and June as the coronavirus lockdown measures forced it into an economic recession. Currently, UK’s recession is bigger and deeper than of any major economy.
The economic output of the UK slumped by an astonishing 20.4% in the second quarter of 2020. This significant drop in economy has officially pushed the nation into a recession. This was also when the lockdown restrictions were the most stringent. The shrinkage reported was bigger than that of any major economy in the world. This is UK’s first deep recession in 11 years with the last one being in 2009. We can expect a huge wave of job losses.
Chancellor Rishi Sunalk told BBC, “the government is grappling with something that is unprecedented and it is a very difficult and uncertain time”. While Chancellor Anneliese Dodds shifts the blame towards Prime Minister Boris Johnson for the huge scale of economic decline. “A downturn was inevitable after lockdown- but Johnson’s job crisis wasn’t.”
The service sectors, which contribute to 4/5 of the economy, suffered the most. With the closure of schools, shops, hotels, restaurants ,and car service stores there was more decline. Almost 730,000 people lost their jobs during the pandemic in the UK since March.
The government has also failed to reproduce most of the trade deals between the EU and third countries that will no longer benefit British exporters by the end of the year 2020. This wobbly relationship between the UK and the EU also describes a blurry future for the betterment of the British economy.
Compared to 2019 the economic output fell by a cumulative 22.1% in the first 6 months of 2020 which is double than the US economy falls i.e. 10.6%.