U.K. Economy Shrinks by More Than Any Other Rich Country
According to second-quarter reports, the UK is facing a steeper Q2 contraction than its counterparts, faring the worst out of any comparable economy due to the COVID-19 pandemic. The UK has also reported the highest death toll within the region, and months of lockdown measures and business closures have pushed the country’s economy into a recession. The economy has reportedly begun to recover as daily life returns to a new normal and offices, factories, and non-essential businesses reopen.
However, experts at the Bank of England analyzing the economic data have warned that it could take until the end of 2021 to regain the economic status that the UK held before the pandemic. In Q2, the UK’s gross domestic product shrank over 20% when compared to Q1, which is equivalent to an annualized rate of 59.8%. Over the same period of time, the US and Germany lost 10% of its gross domestic product while Italy, France, and Spain lost 12%, 14%, and 19% respectively.