The British economy experienced its biggest slowdown in the April-June period due to the implementation of blockade measures to suppress the spread of the coronavirus, a situation that officially brought the country into recession. The UK economy shrank 20.4% from the first three months of this year. Domestic spending decreased when stores were ordered to close, while production and plant also decreased.
Many Sectors Was Hit Hard Because Of The Coronavirus
These conditions pushed Britain into its first technical recession, defined as two consecutive quarters of economic slowdown, since 2009. The UK’s National Statistics Office (ONS) said the economy rebounded in June as government road taxes began to decline. The hotel sector was the hardest hit and food industrial was next.
The ONS said the decline in the service sector was caused by the closure of shops, hotels, restaurants, schools and car repair shops. The services sector, which accounts for four-fifths of the UK economy, experienced the largest decline ever in a quarter. The hospitality industry has also hit hard, with plant closures leading to slower car production since 1954.
Rishi Sunak, the UK finance minister, said the economic downturn will cause more people to lose their jobs in the coming months. Thousands of people have lost their jobs and unfortunately many more will lose their jobs in the next coming month. But Rishi said that they are optimistic that even though times are rough at the moment but they will get through this as long as there a still opportunity and hope.