UK Enters Recession For First Time In 11 Years
Given the impact of Coronavirus pandemic, the United Kingdom has officially entered recession for the first time in eleven years with data set showing a collapse of around 20 per cent of gross domestic product in the second quarter.
Though it is Britain’s first recession since the 2008 financial crisis, the Office for National Statistics is uniformly expected to confirm the unprecedented contraction between April and June.
According to Economists poll by Bloomberg, an average decline of 20.7 per cent was predicted in the second quarter, compared to the first three months of the year.
The UK economy contracted by 2.2 per cent in the first quarter and, with a recession defined as two successive quarters of decline, the data on Wednesday will herald the country’s first in a decade.
Initial figures already released show economic activity plunged around 20 per cent in April, before rebounding slightly in May thanks to the first easing of restrictions.
It was gathered that ONS data showed that around 730,000 workers have been removed from the payrolls of British companies since March an indication that the recession is already wreaking havoc in the UK.