UK’s Office for National Statistics had issued a statement later last week saying that the pandemic-led economic downturn had bottlenecked the UK economy back to a nearly two-decade low, while over March and April, at the peak of the pandemic outbreak in the world’s sixth-largest economy by nominal GDP (Gross Domestic Product) behind India, the UK economy had been telescoped by roughly a quarter as the entire service sectors in Britain was shuttered down to contain the pandemic outbreak.
Aside from that, according to the report from the UK Office of National Statistics, the UK economy had contracted by a record 20.4 per cent in April, down from a 6 per cent slump in economic activity a month earlier, while on an annualized basis, the economy of Britain had witnessed a cataclysmic slump of 24.5 per cent in April compared to the same time a year earlier.
Analysts forecast long slog to recovery
Meanwhile, referring to the extent of contraction in UK economy between March and April what several major Central Banks had branded as the beginning of the biggest economic Depression in more than three centuries, the Director of the Institute for Fiscal Studies think tank, Paul Johnson said, “This is catastrophic, literally on a scale never seen before in history.
The real issue is what happens next." Nonetheless, voicing a cautiously optimistic tone on Britain’s long road to recovery as the UK Government was mulling a reform of social distancing measures as part of its next phase of easing lockdown measures, UK PM Boris Johnson said, “Coronavirus is likely to hit a country like the UK economically very hard.
We depend on services, on human contact. But we’re also a very resilient and a dynamic economy and we will bounce back,” adding that the figures were no surprise given the extent of Britain’s vast service sectors.
Besides, latest disdainful data on UK’s economic growth came forth at a critical time when a majority of Britain’s retail sector was scheduled to open this week and the Government had been urging people to get back to work who couldn’t do their jobs at home.