On this day in 2020, it was reported that the UK economy faced a significant contraction as the coronavirus crisis led to a 2.2 per cent drop in GDP during the first quarter, marking the joint-largest fall since 1979.
Official figures from the Office for National Statistics (ONS) revealed that the initial estimate of a 2 per cent decline was revised following a record 6.9 per cent plunge in March.
The lockdown, which began on March 23, 2020 meant that the full impact of the crisis would be reflected in the second quarter, as the UK economy effectively ground to a standstill.
ONS data indicated that the economy plummeted by 20.4 per cent in April 2020, the largest monthly drop since records began.
Jonathan Athow, deputy national statistician at the ONS, stated: "Our more detailed picture of the economy in the first quarter showed GDP shrank a little more than first estimated – this is now the largest quarterly fall since 1979."
He added: "Information from Government showed health activities declined more than we previously showed."
Athow noted that 'all main sectors of the economy shrank significantly in March as the effects of the pandemic hit'.
He also highlighted the impact on consumer behaviour, saying, 'the sharp fall in consumer spending at the end of March led to a notable increase in households’ savings'.
The economic downturn has raised concerns about the long-term implications for businesses and households across the UK as the nation navigated the unprecedented challenges posed by the pandemic.
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