The UK economy drops by 2 % after the Covid outbreak leading to the largest decrease since the 2008 crisis.
During the first three months of 2020, the UK economy drops by 2% after Covid-19 hits hard in March. According to the Office for Financial statistics, the gross domestic product (GDP) has undertaken its biggest fall since the 2008 crisis with a 5.8% activity reduction.
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Uk economy falls: is there a financial crisis?
The most recent numbers demonstrate the effects of the Covid-19 pandemic following the process of confinement that the UK has undertaken. The next three months will reflect the full impact on the UK economy now that the country has come to a standstill.
The deputy national statistician for economic statistics at the ONS, Jonathan Athow, stated that when the pandemic hit, the collapse of the economy followed in March. Services and construction saw decreases every month. Education, motor sales, and restaurants have all fallen considerably. Athow also claimed that the pandemic has affected global trade. There has been a decrease in UK imports and exports over the last few months, along with a drop in Chinese imports.
The head of trade for INFINOX, Ulas Akincilar, said: “A 2% decline over three months caused gnashing of teeth when it last happened in the dark days of 2008, but right now it feels almost like a win.” Some warn that even with a decrease in GDP, the UK will not be ending the lockdown ahead of time.
Fran Boait, executive director of Positive Money, stated that as GDP carries on plummeting, policymakers will be more and more tempted to quicken the easing of emergency public health measures. They aim to rebuild the UK economy leading to a conflicting hurry for growth and public health. This is caused by the government’s eagerness to get employees back to the workforce, disregarding whether this measure is secure.