UK economy in the commune sharply declining since 1979, after falling 2.2% at the start of the year

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The UK economy contracted more than the first thought between January and March, dropping 2.2% in the highest drop joint since 1979, the National Statistics Office (ONS) said.Jonathan Athow, sub-national statistician at the ONS, said: “Our more detailed picture of the economy in the first quarter showed GDP fell slightly more than the first estimate.

“It is now the largest quarterly fall since 1979.

“Government information has shown health activities have declined more than we have shown previously.

“All major sectors of the economy fell sharply in March, the effects of the pandemic hitting.

“The drop in consumer spending in late March led to a noticeable increase in the number of savings households. “



Cornavirus to hit hard, and things weren’t very good before

The ONS said that between January and March, Household consumption fell fell 2.9%, revised down the most since July to September 1979.

At the same time, people have been recording more – with the households savings rate increased by 8.6%.

Services, production and the construction sector all fell, with exit services dropping by a record 2.3%.

All of the locking effects seem to lead us further into negative territory, once they are taken into account.



Closed stores, travel, these bans and more caused the tank economy

The ONS said in April that the economy fell an astonishing 25% – even adding that there was a lot of uncertainty around the numbers at the moment.

“In April the drop in GDP is the largest the UK has ever seen, more than three times greater than last month, and almost ten times greater than the steepest pre-covid-19 in the fall, ”Athow said.

“In April the economy was about 25% lower than in February.

“Virtually every sector of the economy has been affected, with pubs, education, health and car sales all giving the greatest contribution to this historic downfall.

“Manufacturing and construction have experienced major declines, with car manufacturing and housebuilding particularly affected by the crisis.

“The UK’s trade with the rest of the world has also been hit hard by the pandemic, with large falls in both the import and export of cars, fuel, works of art and clothing. ”

The Organization for Economic Co-operation and Development (OECD) said the UK economy was likely to shrink 11.5% in 2020 – but could contract by 14% if there is a second wave of Covid-19 later this year.

He said UK activity has been put to suffer particularly badly, because Britain is largely based on serving the economy.

The service sector, which includes financial services, retail, hospitality, real estate and tourism, accounts for around three-quarters of UK GDP and has been severely affected by locking restrictions to contain Covid- 19.

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