A billboard displays official advice for testing and tracing coronavirus by the UK government.
Mike Kemp | In PIctures via Getty Images
The UK economy shrank by 20.4% in the second quarter of 2020, compared to the previous three months, as coronavirus-induced lockdowns hampered activity, according to preliminary figures released on Wednesday.
GDP (gross domestic product) expanded by 8.7% in June, when government closure measures were reduced, following a soft 1.8% in May after a 20.4% check in April. showed increase.
The plunge of the second quarter is the worst on record and follows a contraction of 2.2% in the first quarter. Analysts had expected a fall of 20.5%, according to a Reuters survey. Two consecutive periods of contraction mean that the British economy is now in a technical decline
Services, construction and manufacturing all saw quarterly declines, particularly in the sectors most exposed to government restrictions, according to the Office for National Statistics (ONS).
“The economy started bouncing back in June with stores reopening, factories starting to increase production and continuing to restore house construction,” said ONS Deputy National Statistics for Economic Statistics Jonathan Athow.
“Despite this, GDP in June remains a sixth below its level in February, before the virus struck.”
In terms of levels, real GDP last year was lower in the second quarter of 2003, while compared to the second quarter of 2019, the UK economy tumbled by 21.7%.
The ONS notes that its estimates are subject to greater uncertainty than usual, due to the difficulties involved in data collection due to public health constraints.
.
