The British Census Bureau summed up the first quarter. It turns out that the GDP of Great Britain has decreased by 2 per cent. The worst of it, of course, was March, when the coronavirus started wreaking havoc and it was decided to freeze activity. In one month (compared to February) the economy contracted by 5.8%.
This is the largest monthly drop in GDP since a series of surveys began in 1997, according to CNBC reports. The only consolation might be the fact that economists had predicted a deeper recession, and had forecast a monthly conference of 7.2 per cent. So it’s bad, even though it could have been worse.
This does not mean that the British are behind them. exactly the contrary. ING analysts are commenting on the latest reports indicating that the crash peak still lies ahead.
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Economists warn ING: “In the second quarter, GDP is likely to fall by more than 10%, and if most of the economy remains frozen for a longer period, and this is likely to continue until June, there is a risk that the damage is greater.”
According to experts, there is also no chance for a rapid return to the growth of the British economy. They warn that it will not return to its pre-existing state by 2022.
The Bank of England last week presented forecasts showing that GDP could decline by 14% in 2020 as a whole. If these forecasts come true, it will be the worst year for the UK economy in 314 years.
Along with the GDP data, we also learned about the state of the manufacturing sector. Production in the UK decreased by 8.2 percent in March. every year. Only compared to February it was 4.2 percent lower. Thus, all subsequent data shows that black clouds are gathering over the British economy and there is no sector that can protect itself from the negative effects of the epidemic.
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