Between March and April, the UK GDP fell by a quarter as entire sectors of the economy were shut down because of the lockdown. In March, the UK economy lost 6% YoY while in April the GDP additionally shrank by 20.4% compared to March.
Both readings were worse than the unprecedentedly weak estimates from Reuters economists. The Office of National Statistics of Britain said that in 2020, GDP fell to the size of 2002.
“This is a catastrophic recession, on a scale that has never been seen before in history,” said Paul Johnson, director of the Institute for Fiscal Research at the Analytical Center. “The problem is what awaits us next.
British Finance Minister Rishi Sunak said: “Coronavirus has a serious impact on our economy, as well as on many other economies in the world.”
However, the Organization for Economic Co-operation and Development (OECD) said that Britain, with its strong service industry, which has been hit hard by social distance measures, could experience the worst decline among all countries in the Organization, down 11.5% this year.
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