Home Uncategorized UK slumps into economy recession first time in 11 years

UK slumps into economy recession first time in 11 years

222
0
British Prime Minister Boris Johnson makes a statement on his first day back at work in Downing Street, London, after recovering from a bout with the coronavirus that put him in intensive care, Monday, April 27, 2020. The highly contagious COVID-19 coronavirus has impacted on nations around the globe, many imposing self isolation and exercising social distancing when people move from their homes. (AP Photo/Frank Augstein)

The UK economy suffered its biggest slump on record between April and June as Coronavirus lockdown measures pushed the country officially into recession.

The economy shrank 20.4% compared with the first three months of the year.

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

This pushed the UK into its first technical recession – defined as two consecutive quarters of economic decline – since 2009.

Chancellor Rishi Sunak told the BBC that the government was “grappling with something that is unprecedented” and that it was “a very difficult and uncertain time”.

But shadow chancellor Anneliese Dodds blamed Prime Minister Boris Johnson for the scale of the economic decline, saying: “A downturn was inevitable after lockdown – but Johnson’s jobs crisis wasn’t.”

How are ordinary people being affected?

Kate Treglown, 44, of Walthamstow in east London, is currently out of work as a result of the coronavirus crisis. She was made redundant from her advertising job at the end of July afterbeing on furlough.

“I worked for 16-and-a-half years for an advertising agency that promoted live events. The work totally dried up in May,” she told the BBC.

BBC

LEAVE A REPLY

Please enter your comment!
Please enter your name here