UK economy shrinks due to lockdown

UK economy shrinks due to lockdown

Britain’s economy shrank by a record 20.4% in April from March as the country spent the month in a tight coronavirus lockdown, official data showed on Friday in what is likely to be the bottom of the crash before a long and slow recovery.

In a slump that dwarfed previous downturns in Britain’s recent history, the Office for National Statistics also said the economy shrank by 24.5% compared with April last year.

“CORONAVIRUS IS HAVING A SEVERE IMPACT ON OUR ECONOMY”

Both readings were below the already unprecedentedly weak forecasts in a Reuters poll of economists. “Record GDP falls in today’s figures. When taking April and March together the economy is 25% smaller. The economy in April the same size as it was in 2002,” ONS statistician Rob Kent-Smith said on Twitter.

“In line with many other economies around the world, coronavirus is having a severe impact on our economy,” finance minister Rishi Sunak said.

Next week much of Britain’s retail sector is due to reopen as long as shops follow social distancing rules.

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