UK economy suffered record collapse in second quarter

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A woman in a protective mask waits for customers at a souvenir shop in the historic Southbank – a cultural hub in London as the city encourages domestic tourism after the global coronavirus lockdown drastically reduced international tourism to London, in England, August 10, 2020.

Dominika Zarzycka / Zuma Press

The UK economy collapsed in the second quarter by the worst ever recorded in the worst result of any major economy during the pandemic.
British gross domestic product fell 20.4% qoq in the second quarter, worse than even hard hit France and Spain. This was double the declines of around 10% in the United States and Germany over the period.

The 20.4% drop was slightly better than the 21.2% drop predicted by economists.

“The economy began to rebound in June with the reopening of stores, factories starting to ramp up production, and housing construction continued to recover. Despite this, GDP in June is still a sixth below its February level, before the virus hits, ”said Jonathan Athow, national deputy for economic statistics at the ONS.

Even though the UK has opened up, it still has more restrictions than other advanced economies. Goldman Sachs’ effective foreclosure index for the UK is twice that of France and also above the US, Germany, Italy and Spain. Residents of Manchester, east Lancashire and parts of West Yorkshire are prohibited from meeting different households inside.

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