COVID-19: Britain Officially Enters Recession For First Time In 11 Years

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The United Kingdom has officially entered recession for the first time in 11 years due to the coronavirus pandemic.

Britain officially entered recession, with data set showing a collapse of around 20 percent of gross domestic product in the second quarter.

Household spending reduced as shops were ordered to close, while factory and construction output also fell.

The Office for National Statistics (ONS) said the economy bounced back in June as government restrictions on movement started to ease.

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Jonathan Athow, deputy national statistician for economic statistics, said: “The recession brought on by the coronavirus pandemic has led to the biggest fall in quarterly GDP on record.

“The economy began to bounce back in June with shops reopening, factories beginning to ramp up production and housebuilding continuing to recover.

“Despite this, GDP in June still remains a sixth below its level in February, before the virus struck.

“Overall, productivity saw its largest-ever fall in the second quarter. Hospitality was worst hit, with productivity in that industry falling by three-quarters in recent months.”

Detailed breakdowns reveal that accommodation and food services was the worse hit as the sector didn’t start reopening until July with output shrinking 86.7 percent across the quarter.

Rishi Sunak, the UK’s chancellor, said the economic slump would lead to more job losses in the coming months.

He said: “Hundreds of thousands of people have already lost their jobs, and sadly in the coming months many more will.

“But while there are difficult choices to be made ahead, we will get through this, and I can assure people that nobody will be left without hope or opportunity.”

 

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