UK Prime Minister, Boris Johnson

UK Slips Into Recession, First Since 2008

The United Kingdom has fallen into recession due to the impact of the coronavirus pandemic, AFP reports.

Britain is experiencing its first since the 2008 financial crisis.

According to the data released, there is a collapse of around 20 percent of gross domestic product in the second quarter. It is described as the worst contraction in Europe.

The figures released shows that UK’s economic activity plunged around 20 percent in April, and slightly bounced back in May due to the first easing of lockdown.

The UK government had tried to avert, albeit unsuccessful, the current economic woes by injecting funds into the economy, including spending tens of billions of pounds on job support schemes in a bid to avoid mass layoffs.

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In the same vein, the Bank of England has cut interest rates to historic lows that are almost zero and launched asset buybacks.

Britain would post the worst performance in the second quarter in Europe, ahead of Spain (-18.5 percent) and France (-13.8 percent) if its GDP drops by more than 20 percent.

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