Coronavirus Crisis Shrink UK Economy To Recession

Coronavirus Crisis Shrink UK Economy To Recession

Office for National Statistics (ONS) has declared the largest recession in the UK since the 2008 financial crash as its quarterly GDP fell by 20.4pc between April and June.

The UK economy has crashed into the deepest ever recession as a result of COVID-19 lockdown. Many analysts have already warned that hard times are there to come still.

Though the UK economy is facing a recession technically since 2009, the 2020 2nd quarter ((April, May and June) GDP (Gross Domestic Product) results have shrunk to a record level.

Also, read: COVID-19 Drags Sensex Down And Warns Of Global Recession

Despite the lightening recession seem to have ended due to slight growth in June 2020 by 8.7%, as the lockdown has eased and businesses started to open, factories beginning to ramp up production and real estate continuing to recover. But, recovery is a long way to go. The GDP fall is mainly because of the lockdown which completely barred the people from using goods and services produced by the country.

There is a huge job loss recorded in the UK, further, it is expected to have tough decisions ahead. one of the reasons that might add to the present difficulty is the exit from BREXIT.

Though the recession seems to be inevitable, the policies that could curb this recession is a key role player. The worldwide recession has been a major concern. Many economies are struggling to get back onto the development track because of the coronavirus pandemic.

It is evident that the entire aviation industry and tourism industry has been shut down across the world. Apart from local transportation, global transportation is on halt presently. Recent ties with China is also a major factor for the UK that has to be considered. Huawei shut down in the UK is one of the best examples related to policies with respect to China.

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