UK economy has crashed by nearly 20%

canary wharf image

The UK economy has crashed by nearly 20% over the three months to May 2020. However, in May itself, the economy grew slightly.

What are the numbers?

According to the ONS*, the size of the UK economy has fallen considerably as a result of the Lockdown measures used to battle the Covid 19 pandemic.

They have just released numbers for the three months between March and May.  These numbers show the UK economy has crashed by nearly 20% (19.1%).  The numbers are;

  • GDP* (overall) -19%
  • Construction -30%
  • Services -19%
  • Production -16%

Only one section of the economy grew, which was Public Administration and Defence, which only grew by 0.2%.  All other sectors of the UK economy fell.  Some of the largest falls in individual sectors are;

  • Accommodation & Food -72%
  • Education -38%
  • Transport -30%
  • Administration & Support -38%
  • Motor Trade -24%
  • Manufacturing -18%

Was there any good news?

Yes, as the latest UK economy figures also show that despite the large falls over three months, the UK economy grew slightly in May, by 1.8%.

According to Jonathan Athow of the ONS;

“…the economy was still a quarter smaller in May than in February, before the full effects of the pandemic struck.

In the important services sector, we saw some pickup in retail, which saw record online sales.

However, with lockdown restrictions remaining in place, many other services remained in the doldrums, with a number of areas seeing further declines.”

Sources & Notes

*The ONS are the official UK government agency for economic data.

*GDP means Gross Domestic Product and is the name used for how large an economy is

Some numbers rounded to made the article easier to read.  Full details here;

ONS Press Release GDP May 2020