The United Kingdom, UK, has officially fallen into recession
for the first time in 11 years due to the huge impact of the coronavirus
pandemic.
A report from the Office for National Statistics stated that
the country’s gross domestic product, GDP, is estimated to have fallen by a
record 20.4% between April and June 2020, making it the second consecutive
quarterly decline after it fell by 2.2% between January to March 2020.
According to the report, the collapse in output was driven
by the closure of shops, hotels, restaurants, schools, and car repair shops due
to the coronavirus pandemic.
The services sector, which powers four-fifths of the
economy, also suffered the biggest quarterly decline on record.
Also, the construction sector was particularly badly hit,
after building sites were shut down during the height of the lockdown.
However, the deputy national statistician for economic
statistics, Jonathan Athow, said the economy bounced back in June after the
monthly gross domestic product (GDP) expanded by 8.7% following growth of 2.4%
in May 2020, but it wasn’t enough to recover the lost output earlier in the
year.
“The economy began to bounce back in June with shops
reopening, factories beginning to ramp up production and housebuilding
continuing to recover.
“Despite this, gross domestic product (GDP) in June still
remains a sixth below its level in February, before the virus struck,” Athow
said.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com