According to the statistics office, this is the worst recession ever recorded. The focus was during the month of April, when the corona crisis caused an almost total economic standstill.
According to experts, Britain appears to be paying a heavy price economically for the slow enactment of lockdown measures in March. The country also has the highest number of deaths from the coronavirus in Europe. Due to sometimes sudden local sources of contamination, concerns about additional lockdown measures have recently increased again.
Another economic factor is that the British government is phasing out wage support schemes again. In addition, Brexit is creating a lot of uncertainty. British companies face high trade tariffs if the London government fails to negotiate a trade deal with the European Union before the end of the year.
Only restored at the end of 2021
The Bank of England recently stated that the British economy will likely need more time to recover from the corona crisis than previously thought. As the situation stands now, it will probably not be possible to get the British economy back to its December 2019 level until the earliest at the end of next year, the central bank foresaw. In May, the Bank of England said that the economy could return to pre-crisis levels in the second half of 2021.
But the recession will probably turn out to be a bit less sharp, according to the forecasts last week. The UK economy appeared to be on track for an overall contraction of 9.5 percent by 2020, the worst performance in 99 years or since the harsh years after World War I. In May, the Bank of England expected an economic boom of 14 percent. That had been the worst economic blow in more than three centuries.