The UK Economy Has Fallen of a Cliff.
It’s not been the best kept secret that the UK growth figures for April would be a worse than the rocky horror show. What with the national economy closed due to Covid-19 pandemic it was clear and inevitable that economic activity would take a hit of historic proportions.
The 20.4% contraction of the UK economy is the worst on record. The decline is three times as big as the contraction in March and 10 times as big as anything before Covid-19. The UK economy was 25% smaller in April than in February. Almost Two decades of growth wiped out in just two months.
If there is a single crumb of comfort to be taken from these figures it is that April will mark the bottom of the trough. The economy has started to grow in May due to lockdown restrictions gradually being lifted. But the improvement will be marginal. Britain’s economy has fallen off a cliff. How quickly the economy will recovery is anyone’s guess. All we know is it will be a long climb back.
We also know thanks to the Office of National Statisticts it has been the poorest in England and Wales who have been hit the hardest by coronavirus. People living in the most deprived parts died of Covid-19 at double the rate of those living in the most wealthy areas.
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