Facebook Twitter Instagram
    Trending
    • EFCC Arrests New Naira Notes Hoarders In Abuja
    • Buhari’s Kano Visit: Protesting Youths Barricade Roads, Stone Helicopter
    • DSS Arrests Syndicates Selling New Naira Notes
    • Osun: APC Obtained Incomplete BVAS Report – Ex-INEC Director
    • Japa: FG Warns Against Illegal Migration
    • ChatGPT Usage Banned In French University
    • Twitter Says Users Will Be Able To Appeal Account Suspension
    • BEWARE! Risky Electric Blankets Sold Online
    Facebook Twitter Instagram YouTube
    Sync News NigSync News Nig
    • NEWS
      • Business & Economy
      • Politics
      • Banking & Finance
      • Tech & Innovation
      • Health
      • World
    • BRAND NEWS
    • SPORT
      • Football
      • Boxing
      • Basketball
    • ENTERTAINMENT
      • Celebrities
      • Music
      • Movies
    • FEATURED
    • TRAVELS & LIFESTYLE
      • Beauty &Health
      • Fashion
      • Food, Travel, Arts & Culture
      • Relationships & Weddings
    • SYNC TV
    Sync News NigSync News Nig
    Home»News»UK Officially Enters Recession For First Time In Over A Decade
    News

    UK Officially Enters Recession For First Time In Over A Decade

    Deborah AdegokeBy Deborah AdegokeAugust 12, 2020No Comments3 Mins Read
    On Sunday, U.K. Prime Minister Boris Johnson announced a gradual easing of restrictions.
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The United Kingdom has officially fallen into recession for the first time in 11 years.

    The reasons is due to the impact of the coronavirus pandemic, reports say.

    Britain officially entered recession, with data set showing a collapse of around 20 percent of gross domestic product in the second quarter — the worst contraction in Europe.

    The Office for National Statistics is uniformly expected to confirm the unprecedented contraction between April and June.

    It is Britain’s first recession since the 2008 financial crisis.

    The predicted drop in output reflects the mammoth fall in economic activity nationwide during the quarter due to the lockdown imposed to tackle the pandemic.

    Economists polled by Bloomberg have on average predicted a decline of 20.7 percent in the second quarter, compared to the first three months of the year.

    The UK economy contracted by 2.2 percent in the first quarter and, with a recession defined as two successive quarters of decline, the data on Wednesday will herald the country’s first in a decade.

    Initial figures already released show economic activity plunged around 20 percent in April, before rebounding slightly in May thanks to the first easing of restrictions.

    The grim economic news comes despite unprecedented government interventions, including spending tens of billions of pounds on job support schemes in a bid to avoid mass layoffs.

    Meanwhile, the Bank of England has launched massive asset buybacks and cut interest rates to historic lows that are almost zero.

    If Britain’s GDP drops by more than 20 percent, it will have posted the worst performance in the second quarter in Europe, ahead of Spain (-18.5 percent) and France (-13.8 percent).

    The country — which already has the highest death toll in Europe from the virus — appears to be paying a heavier price for locking down later than its continental neighbours earlier in the year.

    The British economy also relies more heavily on the hard-hit services sector than other European countries.

    – ‘Won’t be pretty’ –

    The recession is already wreaking havoc, with ONS data released Monday showing that around 730,000 workers have been removed from the payrolls of British companies since March.

    Announcements of job cuts have become a daily occurrence, with companies expected to pick up the pace of layoffs as the government’s key employment support scheme ends in October.

    The unemployment rate is expected to soar in the months ahead, with millions set to turn to government benefit programmes.

    “Whatever the numbers are, and they won’t be pretty, the more important question is how quickly the UK economy can bounce back,” said Michael Hewson, analyst at CMC Markets.

    “We have seen some progress on that,” he added.

    Finance Minister Rishi Sunak has appeared cautious about the pace of the recovery, telling Sky News last week “there is hardship ahead for many people” while noting there was “hope”.

    Meanwhile, members of the Bank of England have been divided over how quickly Britain will return to economic normalcy. 

    Recent indicators suggest a strong rebound in many industries, from retail sales — which saw a boost from businesses reopening in June — to other private-sector activity such as construction.

    In its forecast released last week, the BoE was less pessimistic about the fall in GDP for the whole of 2020, forecasting a drop of 9.5 percent.

    But at the same time, it said it expects a slower recovery in 2021 and warned that the economy would not return to its pre-pandemic level until 2022.

    Source: AFP

    UK UK officially enters recession United Kingdom
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Deborah Adegoke

    Related Posts

    EFCC Arrests New Naira Notes Hoarders In Abuja

    January 31, 2023

    Buhari’s Kano Visit: Protesting Youths Barricade Roads, Stone Helicopter

    January 31, 2023

    DSS Arrests Syndicates Selling New Naira Notes

    January 31, 2023

    Leave A Reply Cancel Reply

    Recent Posts
    • EFCC Arrests New Naira Notes Hoarders In Abuja
    • Buhari’s Kano Visit: Protesting Youths Barricade Roads, Stone Helicopter
    • DSS Arrests Syndicates Selling New Naira Notes
    • Osun: APC Obtained Incomplete BVAS Report – Ex-INEC Director
    • Japa: FG Warns Against Illegal Migration
    Recent Comments
    • buy cheap neurontin on TAJBank Launches e-Commerce Business ‘TAJMall’
    • FUCK SHEMALES on TAJBank Launches e-Commerce Business ‘TAJMall’
    • TRAVESTIS BAHIA on TAJBank Launches e-Commerce Business ‘TAJMall’
    • vivo slot on Ondo Deputy Governor Officially Resigns From PDP
    • lina on Edo 2020: Court Bars Gov. Obaseki From Participating In PDP Primary
    Archives
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • March 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • December 2018
    Meta
    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org
    Facebook-f Twitter Instagram
    • Banking & Finance
    • Business & Economy
    • Health
    • Politics
    • World
    • Tech & Innovation

    Copyright ©, 2020-2021 syncnewsng.com. All Rights Reserved