Unic Press UK: With the publication of the Gross Domestic Product (GDP) first quarterly estimate, UK: April to June 2020, the Office of National Statistics (ONS) has illustrated that the United Kingdom has plunged into the largest recession on record since 1955 when records begun to date.
The ONS estimates that the UK gross domestic product (GDP) has fallen by a record 20.4% in Quarter 2 (Apr to June) 2020, marking the second consecutive quarterly decline after GDP fell by 2.2% in the previous quarter. This contraction illustrates a “technical” recession, which means, there’s been two consecutive quarters of contracting GDP.
With this 20.4% contraction in Q2 this year, the UK economy is now 22.1% smaller than it was at the end of 2019.
According to the ONS, the report reflects the direct effects of the coronavirus (COVID-19) pandemic, the ongoing public health restrictions and forms of voluntary social distancing, and the other Government measures taken to reduce transmission of the virus.
The highlight of the ONS’ GDP first quarterly estimate, UK: April to June 2020, are:
- UK gross domestic product (GDP) is estimated to have fallen by a record 20.4% in Quarter 2 (Apr to June) 2020, marking the second consecutive quarterly decline after it fell by 2.2% in Quarter 1 (Jan to Mar) 2020.
- When compared with Quarter 4 (Oct to Dec) 2019, UK GDP decreased by 22.1% in Quarter 2 2020.
- Despite the weakness in Quarter 2 2020, there was some pick up in June as government restrictions on movement started to ease.
- There have been record quarterly falls in services, production and construction output in Quarter 2, which have been particularly prevalent in those industries that have been most exposed to government restrictions.
- Private consumption accounted for more than 70% of the fall in the expenditure measure of GDP in Quarter 2 2020, falling by 23.1%; there were also notable falls in gross capital formation and government consumption.
