The UK economy contracted by a record 20.4 percent in April, due to the nationwide lockdown and strict quarantine rules imposed amid the Covid-19 outbreak. Dramatic drops were recorded in all sectors.
The fall in Britain’s monthly GDP for April is the biggest monthly drop since records began in 1997, the Office for National Statistics (ONS) reported. “Record falls” were seen in all sectors, as services went down by 19 percent, while manufacturing dropped by 24.3 percent and construction by 40.1 percent.
Meanwhile, the country’s overall GDP fell by 10.4 percent in the three-month period ending with April, “as government restrictions on movement dramatically reduced economic activity,” the ONS said. In an attempt to slow the spread of Covid-19, the authorities imposed a nationwide lockdown, forcing many businesses to suspend operations and furlough 8.7 million employees as of earlier this month.
On Friday, Chancellor Rishi Sunak acknowledged that “coronavirus is having a severe impact on our economy,” though he added that the government furlough scheme, grants, loans, and tax cuts give “the best chance” of recovery as soon as the economy reopens.
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