UK GDP recorded 20.4% drop in second quarter

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The UK economy contracted 20.4% in the second quarter of 2020, compared to the three months previously released, according to preliminary data released on Wednesday, marked as coronavirus-induced lockdown activity.

GDP (GDP) expanded by 8.7% in June as government lockdown measures eased, with April’s 20.4% contraction leading to a 1.8% recovery in May.

The decline in the second quarter is the worst on record and after a 2.2% contraction in the first quarter. Analysts had expected a 20.5% drop, according to a Reuters poll. Two consecutive periods of contraction mean that the British economy is now in a technical rescue

According to the Office for National Statistics (ONS), service, manufacturing and production all record quarterly falls, particularly in areas exposed to government restrictions.

“The economy rebounded in June, shops started reopening, production and home construction started booming,” said Jonathan Etho, Ones’ deputy National Statistical for Economic Statistics.

“Despite this, GDP in June is still sixth, down from the sixth level before its virus in February.”

In terms of level, real GDP was last lower in the second quarter of 2003, while compared to the second quarter of 2019, the UK economy fell by 21.7%.

ONS noted that its estimates are subject to greater uncertainty than usual due to difficulties encountered in collecting data due to public health restrictions.