UK crashes into recession after economy shrinks by record amount
BRITAIN has officially entered a recession after the economy shrunk by a record amount in the second quarter of the year.
The Office for National Statistics (ONS) announced that due to the coronavirus crisis the economy contracted by 20.4 per cent between April and June.
Jonathan Athow, deputy national statistician at the ONS, said: ‘The recession brought on by the coronavirus pandemic has led to the biggest fall in quarterly GDP on record.
‘The economy began to bounce back in June with shops reopening, factories beginning to ramp up production and housebuilding 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.’
A recession is defined as two successive quarters of decline in gross domestic product (GDP).
The fall of 20.4 per cent between April and June followed a 2.2 contraction in the previous three months.
But 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.