The dramatic financial originate of the lockdown has been laid bare, with figures showing that the UK economy shrank by greater than a fifth in April. It’s the largest monthly contraction ever recorded – in the principle stout month of lockdown.
The slip of 20.4% in financial enhance is three times greater than that considered at some level of your entire of the financial disaster 12 years in the past. The Place of job for Nationwide Statistics says it has affected virtually all areas of financial process – with housebuilding and car manufacturing particularly badly hit.
The UK just will not be off target for a recession, which is two consecutive quarters of negative enhance. However analysts direct that April change into liable to had been the worst month.
The financial uncertainty has ended in requires trade talks with the EU following Brexit to be extended previous the slay of this year. However the authorities has dominated that out, with cabinet minister Michael Gove asserting he had “formally confirmed” to the EU that there will probably be no prolong.
On the other hand assessments on goods coming to the UK from the EU will probably be phased in next year, to give firms time to adjust.
Reeta Chakrabarti items BBC Files at Ten reporting by Economics Editor Faisal Islam and Political Correspondent Alex Forsyth.
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