The UK economy contracted more than expected in the first three months of this year, a period that included only the first quarantine days, introduced as a result of the Covid-19 pandemic.
The UK’s National Statistics Office announced on Tuesday that Gross Domestic Product contracted by 2.2% in the first three months of 2020 compared to the previous quarter, the worst quarterly contraction in the UK economy since July. September 1979. Analysts interviewed by Reuters were betting on a 2% decline. On an annual basis, the British economy contracted by 1.7% in the first quarter, the worst contraction since the third quarter of 2009. The ONS said it had revised its initial estimates of a contraction. of 2% from one quarter to another and a decline of 1.6% in the annual rate, given that all the main economic sectors registered decreases. “Our more detailed picture of the economy in the first quarter shows that Gross Domestic Product contracted more than originally estimated.
All major sectors of the economy contracted significantly in March as a result of the effects of the pandemic,” Jonathan said. Athow, Deputy Chief Statistician at ONS. Analysts warn that the British authorities have decided to introduce quarantine starting March 23, which means that data for the second quarter will show the full impact of the coronavirus on the economy. The latest WHO data show that the British economy fell by 20.4% in April, the sharpest decline in a single month since the start of the publication of statistics. The National Statistics Office also announced on Tuesday that the UK’s current account deficit widened beyond expectations in the first three months of 2020. The balance of payments deficit rose to £ 21.1 billion ($ 25.9 billion) in the first quarter. quarter compared to an average of £ 15.4 billion, according to analysts interviewed by Reuters. British Prime Minister Boris Johnson will present his plans for economic recovery on Tuesday, plans which, according to the media, are based on investments in infrastructure.