UK GDP plummeted almost 20% in historic Covid smash in Q2

Thursday, October 1, 2020

The UK suffered a record drop in economic performance in the second quarter of 2020 when the Covid 19 lockdown took effect and there wasn't much money to be spent, albeit a slightly smaller decline than first estimated.

Shrank GDP fell 19.8% in the three months to June compared to the first quarter, somewhat less than their original estimate of 20.4% but still more than any other major developed economy, according to the Office for National Statistics.

The drop was the largest since records began in 1955 from the ONS.

Other data indicates that Britain is on course for the largest annual decline since the 1920s.

The UK economy had already contracted by 2.5% from January to March this year when we entered recession at the end of March.

Households saved a record 29.1 percent of household income in the second quarter, compared with 9.6 percent in the first quarter as their ability to spend in shops and restaurants was severely limited during the lockdown, while incomes benefited from a national employment program that expires next month.