The effects of the pandemic had a substantial effect on the United Kingdom economy. Between April and June, the UK economy saw its greatest downturn, meaning the nation is now officially in a recession.
A contrast between January, February, and March revealed a 20.4% downturn in the economy since shops’ closing and a decrease in construction production.
With citizens not being able to leave their homes for a prolonged time, household spending has plummeted significantly.
The Office for National Statistics (ONS) has indicated that this collapse mainly occurred because of the closure of restaurants, hotels, educational institutions, and stores. Many of which were run by 4/5 of the economy before the pandemic.
The description of recession is an economic downturn that goes on for a couple of consecutive quarters. The nation has been suffering from this for the 1st time since 2009.
There have been differences of opinion on this. Chancellor Rishi Sunak explained the situation with the virus as a tough and volatile period. Acknowledging that the policymakers have to deal with something unseen in recent history.
The shadow Chancellor, Anneliese Dodds, has a more accusatory view and blames Boris Johnson for the severity of the economic downturn. Saying a slowdown was unavoidable with the lockdowns – but Johnson’s mishandling of the situation was not.
She highlighted the combo of the recession and the worst excess death rate is a disaster for the UK, and the PM is to blame.
There are minor signs of change, with the economy beginning to climb back after the lockdowns’ ease in June. Rising by 8.7% that month compared to only 1.8% in May.
But, Jonathan Anthow, Deputy National Statistician for Economic Statistics, highlighted that this aside, the overall domestic product during that summer month remained a sixth under its level in February, before the arrival of the coronavirus.
But, it’s thought that the recession will cause more job losses in the following months. Even after the number of employed people has fallen by an incredible 220K while the lockdown was in place.