Record Decline in the UK Economy! Does the Sun Go Down?

Record Decline in the UK Economy! Does the Sun Go Down?

In April, the gross domestic product in the UK economy fell by 20.4 percent compared to the previous month. This was the biggest decrease in the history of the country on a monthly basis. While such a bad economic event has not happened in the history of the UK before, the economy of the country is expected to decrease by 11.5 percent in 2020. The British government had previously been criticized for not making precautions and restrictions using the herd immunity system against the corona virus epidemic. Prime Minister Boris Johnson was also the person, who fall of the corona virus. Looking at the information published by the Business Insider, the economy is collapsing within the UK, on ​​the one hand, fighting the epidemic of corona virus, and on the other, Brexit, which is seeking to sign trade agreements with the European Union. Looking at the data released by the National Statistical Office (ONS), the UK's gross domestic product fell by 20.4 percent in April compared to March. This event was considered the most serious monthly-based contraction in the history of the UK. “The fall in April has been the largest of the declines in history to date,” said Jonathan Athow, statistical officer at the National Statistics Office. There was a three-fold shrinkage from the contraction in March, and a 10-fold shrinkage just before the corona virus epidemic. Almost all areas of the economy have been hit ”.

"WE CAN'T SURVIVE AGAINST THE SECOND SHOCK!"

The British Industrial Confederation (CBI), representing 190 thousand companies, stated in their last warning that they spent all their cash that they had during the epidemic and could not survive a second shock. CBI General Manager Caroly Fairbairn said, “The durability of the British business world has definitely hit bottom. Every cash on the sidelines and all the stocks prepared were exhausted. None of the companies I have spoken to have a plan in case there is no commercial agreement with the EU after Brexit ”.

SHRINKAGE MAY BE EXCEED 14 PERCENT IN 2020

According to the figures envisaged by the Economic Cooperation and Development Organization, unemployment may reach 15 percent in the last quarter of the year in the UK in case of a second wave of corona virus outbreak. Another forecast is that the country's economy will experience a contraction of 11.5 percent in 2020. If the second wave is experienced in the outbreak, this figure may exceed a serious rate of 14 percent.