In the Second Quarter of 2020, British GDP Shrank by 21.7 %
OREANDA-NEWS. In the second quarter of this year, the gross domestic product (GDP) of the United Kingdom decreased by 21.7 % in annual terms and by 20.4 % in quarterly terms. In the first quarter of 2020, the drop in GDP was 1.7 % in annual terms and 2.2 % in quarterly terms. Thus, the country’s economy entered a recession for the first time in 11 years, BBC reports, citing data from the Office of National Statistics.
The reason for the fall was the measures taken to combat the spread of the new coronavirus infection. Because of them, the suspension of production at factories, the closure of shops and a halt in construction were observed. As BBC notes, the British economy previously experienced a technical recession in two quarters of 2009.
Earlier, The Guardian, citing data from the Office of National Statistics, reported that Britain’s national debt is larger than its economy for the first time since 1963. This happened in May after the government borrowed a record sum of 55 billion pounds sterling (68 billion US dollars).
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