UK crashes into recession after economy shrinks by record amount

UK has gone into recession. Picture: Dominic Lipinski/PA WireUK has gone into recession. Picture: Dominic Lipinski/PA Wire
UK has gone into recession. Picture: Dominic Lipinski/PA Wire
BRITAIN has officially entered a recession after the economy shrunk by a record amount in the second quarter of the year.

The Office for National Statistics (ONS) announced that due to the coronavirus crisis the economy contracted by 20.4 per cent between April and June.

Jonathan Athow, deputy national statistician at the ONS, said: ‘The recession brought on by the coronavirus pandemic has led to the biggest fall in quarterly GDP on record.

Hide Ad
Hide Ad

‘The economy began to bounce back in June with shops reopening, factories beginning to ramp up production and housebuilding continuing to recover.

Read More
Debenhams to axe 2,500 jobs across stores and warehouses

‘Despite this, GDP in June still remains a sixth below its level in February, before the virus struck.

‘Overall, productivity saw its largest-ever fall in the second quarter. Hospitality was worst hit, with productivity in that industry falling by three-quarters in recent months.’

A recession is defined as two successive quarters of decline in gross domestic product (GDP).

Hide Ad
Hide Ad

The fall of 20.4 per cent between April and June followed a 2.2 contraction in the previous three months.

But monthly figures showed the economy bounced back by 8.7 per cent in June, following upwardly revised growth of 2.4 per cent in May, as lockdown restrictions eased.

A message from the Editor, Mark Waldron

Thank you for reading this story. The dramatic events of 2020 are having a major impact on our advertisers and thus our revenues.

The News is more reliant than ever on you taking out a digital subscription to support our journalism. You can subscribe here for unlimited access to Portsmouth news and information online.

Every subscription helps us continue providing trusted, local journalism and campaign on your behalf for our city.

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.