Confirmed – UK economy shrunk by a fifth in Lockdown
The ONS have confirmed the UK economy shrank by a fifth during the first national lockdown. Lockdown restrictions introduced by the UK Government as part of the response to Covid19 created a significant recession.
This chart shows the fall in GDP compared to previous years;
According the ONS, the UK economy;
- Shrank by 25.6% specifically between February and April
- Shrank by 22% in the first 6 months of the year
- Increased in May, June and July as recovery started
- Most recent increase in July was 6.6%
Overall, the economy is still significantly smaller than pre Lockdown. Some examples;
- Accomodation and Food 60% smaller
- Entertainment 31% smaller
- Education 21% smaller
The only areas of the UK economy that have grown are;
- Motor Vehicle repair up 0.3%
- Public Administration up 0.5%
How does the UK compare to other similar countries?
The UK is often compared to other countries in the G7, which contains France, Germany, Italy, USA, Japan, and Canada.
The UK economy performed the worst out of all these countries.
As the ONS press release explains;
“UK gross domestic product (GDP) contracted by a record… in Quarter 2 (Apr to June) 2020, following a decline …in the previous quarter, as a result of the coronavirus (COVID-19) pandemic and restrictions subsequently applied in the UK. These include the mandatory closures of non-essential businesses and voluntary social distancing to protect public health. This has been reflected in widespread falls in output produced by services, production, and construction industries, as well as by sharp reductions in spending by households and businesses in the UK and the rest of the world”
Want to learn more?
You can read the ONS press release here
Find out more about NewsBrokerUK here
The ONS is the Office for National Statistics, which is the official UK government agency for economic data. GDP means Gross Domestic Product and is the name used for the size of a country’s economy.