UK’s GDP Falls a Record 20.4% in April Alone as Economy is Paralyzed by Lockdown
LONDON – Britain’s economy shrank by a record 20.4% in April as the first full month of the coronavirus lockdown triggered an economic crash three times greater than the 2008 financial crisis. Revealing the scale of the downturn, the official figures for the GDP from the Office for National Statistics showed no area of the economy was left unscathed, The Guardian reported.
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The decline was the largest since comparable monthly records began in 1997 and was more than triple the previous record fall of 5.8% in March, when the lockdown was imposed late in the month. The ONS said the monthly decline in April broke records across the board with all the main drivers of economic growth plunging into reverse, as businesses were forced to close and millions of workers placed on furlough.
The country’s dominant services sector shrank by almost a fifth, fuelled by the closure of shops on the high street, pubs, restaurants and hotels, and evaporating car sales. Air transport shrank by 92.8% in the biggest fall of any sector as flights were grounded across Britain and other countries. After the closure of hotels, pubs, bars and restaurants, the accommodation and food services sector shrank by 88% on the month.
Faced with disruption to international supply chains and the need to protect workers, shutdowns in production at many factories and reduced hours at others led manufacturing output to fall by 25%. The ONS said a 20.3% decline in production – which includes factory output as well as energy and mining – was more than double the collapse recorded during the miners’ strikes and Winter of Discontent of the 1970s, in the biggest slump since records began in 1968.
With cranes and diggers across the country falling idle, construction output plunged by 40%.
Jonathan Athow, deputy national statistician for economic statistics at the ONS, said, “April’s fall in GDP is the biggest the UK has ever seen, more than three times larger than last month and almost 10 times larger than the steepest pre-COVID-19 fall.”
Although some lockdown measures are now being eased as the government attempts to gradually reopen the economy, the snapshot from the ONS showed Britain’s economy at the onset of the deepest recession in living memory.
https://www.fort-russ.com/2020/06/uks-gdp-falls-a-record-20-4-in-april-alone-as-economy-is-paralyzed-by-lockdown/