financetom
Economy
financetom
/
Economy
/
UK economy officially in recession after 20.4% Q2 slump
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
UK economy officially in recession after 20.4% Q2 slump
Aug 12, 2020 5:34 AM

The UK economy has officially fallen into a recession after official figures showed it contracting by a record 20.4 percent in the second quarter as a result of lockdown measures put in place to counter the coronavirus pandemic.

Share Market Live

NSE

The slump recorded by the Office for National Statistics follows a 2.2 percent quarterly contraction in the first three months of the year. As such, the UK economy is in a recession - commonly defined as two quarters of negative growth.

Unlike other countries, Britain's statistics agency provides monthly figures to accompany the quarterly numbers and these show some hope that the economy is healing in the wake of the easing of some lockdown restrictions.

In June, when shops selling non-essential goods were allowed to reopen, the British economy grew by a monthly rate of 8.7 percent. "The economy began to bounce back in June with shops reopening, factories beginning to ramp up production and house-building continuing to recover," said statistician Jonathan Athow.

Despite this, he said the economy remains a sixth below its level in February, before the virus started to impact. The British government hopes that the further easing of the economy over recent months, such as the reopening of the hospitality sector in July, will allow the economy to claw back further ground.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US Dollar Dominance, Trump's Trade War, And The Threat Of Recession: This Week In Economy
US Dollar Dominance, Trump's Trade War, And The Threat Of Recession: This Week In Economy
May 25, 2025
The past week has been a rollercoaster ride for the markets, with significant shifts and potential economic shocks looming on the horizon. From the unique advantage of the US in navigating economic shifts due to its dollar-denominated debt, to the escalating tariff war initiated by President Donald Trump, the economic landscape is rife with uncertainty. Here’s a quick recap of...
16 Million Jobs At Risk In China As US Tariffs Hammer Manufacturing And Retail Sectors, Goldman Sachs Warns
16 Million Jobs At Risk In China As US Tariffs Hammer Manufacturing And Retail Sectors, Goldman Sachs Warns
May 25, 2025
Analysts from Goldman Sachs have warned that the U.S. tariffs on Chinese imports could put up to 16 million jobs in China at risk, particularly in the manufacturing sector. What Happened: The bank stated that persistently high U.S.-China tariffs and a significant drop in Chinese exports could put pressure on labor markets. The jobs under threat are primarily involved in the production of exports to...
U.S. tariffs will cause demand shock to Singapore economy: MAS
U.S. tariffs will cause demand shock to Singapore economy: MAS
May 25, 2025
SINGAPORE (Reuters) -U.S. tariffs will have multiplier effects that will generate a broader negative income and demand shock to the Singapore economy, the Monetary Authority of Singapore said in its macroeconomic review released on Monday. As well as the direct impact of a 10% baseline tariff on Singapore's exports to the U.S., its second-largest export market, there will also be...
Amid Trump tariffs, China's trade and economy tsar steps into spotlight
Amid Trump tariffs, China's trade and economy tsar steps into spotlight
May 25, 2025
BEIJING/WASHINGTON (Reuters) -When the leaders of some of the world's largest companies flocked to Beijing for a business forum last month, their main purpose was a coveted meeting with Chinese leader Xi Jinping. But many were left impressed by Vice Premier He Lifeng, according to a U.S. business person briefed on the encounters.   A longtime confidant of the Chinese leader,...
Copyright 2023-2025 - www.financetom.com All Rights Reserved