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UK economy shrinks by record 20.4% in April

Video Credit: Reuters Studio
Published on June 12, 2020 - Duration: 01:23s

UK economy shrinks by record 20.4% in April

Britain's economy shrank by a record 20.4% in April from March as the country spent the month in a tight coronavirus lockdown, official data showed on Friday.

Ciara Lee reports

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UK economy shrinks by record 20.4% in April

It's being seen as the bottom of the crash, before a long and slow recovery.

Data released on Friday (June 12) revealed Britain's economy shrank by a record 20.4% in April from March.

Like others around the world, the country spent April in lockdown.

In a slump that dwarfed previous downturns in Britain's recent history, the Office for National Statistics also said the economy shrank by 24.5% compared with April last year.

Both readings were worse than the already weak forecasts in a Reuters poll of economists.

And the Bank of England has warned that Britain could be heading for its deepest recession in three centuries.

While other countries in Europe are also seeing contraction, the Organisation for Economic Co-operation and Development said this week that Britain was on course for the worst downturn among the countries it covers.

It forecasts the economy will contract 11.5% this year.

The UK government has unleashed a number of schemes aimed at securing a swift recovery.

Next week much of the country's retail sector is due to reopen with social distancing rules.

The Bank of England governor has said there are signs of a recovery, but warned there was likely to be long-term economic damage.

Next week the central bank is expected to announce a further increase in its bond-buying firepower of at least 100 billion pounds, or about 124 billion dollars.

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