UK economy shows biggest drop in 40 years
Saturday, 07 04 2020, Category: Economy, Country: United Kingdom
Britain’s economy shrank by the most since 1979 in early 2020 as households slashed their spending, according to official data that included the first few days of the coronavirus lockdown.
Gross domestic product dropped by a quarterly 2.2% between January and March, the Office for National Statistics (ONS) said.
That was below the median forecast in a Reuters poll of economists for a fall of 2.0%.
Prime Minister Boris Johnson will set out his plan to speed up the British economy’s recovery later on Tuesday when he will promise to fast-track 5 billion pounds ($6.13 billion) of infrastructure investment.
Britain’s economy may have contracted by 20% in the first half of 2020, the Bank of England said earlier this month as the full effects of the lockdown hammered most sectors in the April-June period. The BoE has said the slump in the economy this year could be the worst in three centuries.