The City in London during the coronavirus health crisis (illustration). - Tolga Akmen / AFP
The pandemic is clearly not sparing the United Kingdom, either in terms of the number of people affected or in the economic sector. His Majesty's country, which has more than 41,000 Covid-19 deaths and 300,000 positive cases, suffered a 20.4% collapse in gross domestic product (GDP) in April, the National Bureau of Statistics said on Friday. ).
This is a record drop, which comes after a 5.8% drop in GDP in March. "The decline in GDP in April is the strongest ever seen in the United Kingdom, more than three times stronger than the previous month and almost ten times more than the sharpest decline before Covid-19," said Jonathan Athow , statistician at the ONS.
GDP fell by a record 20.4% in April; services fell 19.0%, manufacturing fell 24.3% and construction fell 40.1% https://t.co/LTjMFBn4om pic.twitter.com/x9kBJKerQZ- Office for National Statistics (ONS) (@ONS) June 12, 2020
All the major sectors of the economy have melted, be it services, industry or construction. Pubs, education, health and car sales were among the most affected. Foreign trade was not spared with a fall in exports and imports.
"We have always known that it would be a very serious health crisis but would also produce a very strong economic shock," said Prime Minister Boris Johnson.
Economists now expect an unprecedented collapse in the second quarter, which could reach 35% according to the OBR, the public institute that publishes estimates on behalf of the government.
However, the country should start to head out of the water with the gradual restart of activity. "Given the fact that containment started to be relaxed in May, April will mark a trough for GDP. So we have had the worst, ”tries to reassure Andrew Wishart, an economist at Capital Economics.
A gradual recovery therefore since the restrictions will be lifted on all businesses from Monday, except pubs, bars, restaurants or hairdressers for which this will be the case in July.
What weigh on the budget bill, not to mention the social consequences that will be felt now since a spike in unemployment has started.
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