U.K. Economy Won’t Make Up Lost Ground Until End of 2021
The UK economy has suffered alongside other European countries due to the COVID-19 pandemic and subsequent lockdown measures enacted to prevent the spread of the virus. The Bank of England has stated that the economy will take until at least the end of 2021 to recover from an economic contraction and a steep second-quarter fall. Officials state that the economy shrunk by roughly 20% between April and June.
This 20% shrink is largely due to a decrease in exports as international demand plummetted as well as non-essential business closure. The eurozone’s economic shrink is estimated to be around 12%, whereas the US economy only experienced a 9.5% shrink within the same time period. Britain’s economic struggles can also be attributed to the fact that the country relies on “social consumption” services, most of which have been unavailable during the pandemic.