The coronavirus has hit the world economy like no other & it has plunged the world into a crisis like never before. Britain’s economy shrank by 20.4% in the second quarter when the lockdown was the tightest. This must be the biggest contraction of any main financial system reported to date.
Britain struggling with the most dying toll in Europe and additionally the size of financial hit it evokes questions on Prime Minister Boris Johnson on his way of dealing the pandemic. UK deaths linked to the virus has been greater than 50,000.
This financial hit also reports a wave of job losses set to hit later in 2020. Already 1000’s of individuals have misplaced their jobs and this number is believed to rise further in coming days.
The world’s sixth-biggest financial system had entered a recession with low level coming in April when output under its pre-pandemic stage was greater than 25%. The financial system expanded by 8.7% in a month after the development works were resumed and quickened in June, this recovery was faster than the forecasts by economists in a Reuters ballot. Some of the analysts stated that the bounce-back was unlikely to sustain. From the Financial institution of England forecast, for the financial institution to regain its earlier dimension it will take the quarter of 2021, also warned on the sharp rise of unemployment likely to happen. The GDP hunch of the second quarter surpassed from the 12.1% drop within the euro-zone and the fall of 9.5% in the US. An economist with the British Chambers of Commerce stated that the current pick up can be due to the discharge of pent-up demand and not a sustained revival.
The closure of many restaurants, retailers and different public areas after different European international locations shows how much damage was caused within the second quarter. Over the initial six months of 2020, British GDP fell by 22.1% greater than double the 10.6% fall in the United States. Non- essential retailers were closed till June 15 in England and eating places and pubs were shut till July 4.