// UK nosedives into recession after GDP plunges 20.4% between April and June
// ONS says it’s the biggest recession on record and the first since the 2008 financial crisis
// However, monthly figures showed the economy bounced back in June and May
The UK has officially entered into the largest recession on record after figures showed the Covid-19 pandemic sent the economy plunging by 20.4 per cent between April and June.
The ONS confirmed the nosedive into recession for the first time since the 2008 financial crisis after the record-breaking contraction in the second quarter, which follows a 2.2 per cent fall in the previous three months.
A recession is defined as two successive quarters of decline in gross domestic product (GDP).
- FTSE retailers issue more than a years’ worth of profit warnings in 1st half
- “Substantial declines” in retail job vacancies
- The general health of UK retail is at all-time low
However, 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.
The ONS said the economy was still a long way off from recovering the record falls seen in March and April after tumbling into “the largest recession on record”.
“The recession brought on by the coronavirus pandemic has led to the biggest fall in quarterly GDP on record,” ONS deputy national statistician Jonathan Athow said.
“The economy began to bounce back in June, with shops reopening, factories beginning to ramp up production and house-building continuing to recover.
“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.”
with PA Wires