The UK economy recorded its biggest quarterly decline between April and June this year, officially entering recession, however, a final reading of Wednesday’s overall activity showed that the fall was less severe than previously thought.
Gross domestic product, widely used to measure a country’s production, fell by 19. 8% in the last quarter, the largest drop recorded, according to the knowledge of the Office of National Statistics.
The figure is minimal than the previous estimate of a minimum of 20. 4% in the last quarter. After two successive quarterly falls, the UK has officially responded to the technical definition of a recession.
The economy’s historic decline is the biggest decline since the start of quarterly records in 1955 and reflects the containment policies implemented in the face of the COVID-19 pandemic, the ONS said.
GDP figures for the first quarter showed a sharper contraction of 2. 5%, revised from an earlier estimate of a 2. 2% decrease.
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In 3 months, Britain is also abandoning the European Union altogether and, despite more than 4 years since the exit vote in June 2016, conservative Prime Minister Boris Johnson’s government has not yet reached an agreement with the bloc on trade.
“Most of the pain of falling GDP this quarter was due to the government and not families and businesses,” said Ruth Gregory, senior UK economist at Capital Economics. “But with the recovery already stabilizing, taxation is fading and the aftermath of unemployment that they still don’t feel, this will replace part of 2020 at the moment. “
Sterling fell by 0. 3% compared to Wednesday’.
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