Recently, the United Kingdom has been hit by a series of economic blows as it crashes into recession. The latest figures released by the Office for National Statistics (ONS) show that the country’s Gross Domestic Product (GDP) has fallen for the second consecutive quarter, officially pushing the UK into a recession.
The GDP fell by a staggering 20.4% in the second quarter of 2020, following a 2.2% decline in the first quarter. This sharp contraction in economic activity is largely attributed to the impact of the COVID-19 pandemic, which brought the country to a standstill as lockdown measures were enforced to curb the spread of the virus.
In addition to the GDP slump, retail sales have also taken a hit as consumers tightened their belts during the economic downturn. The ONS reported that retail sales fell by 0.9% in July, following a 13.9% jump in June as shops reopened after the lockdown. This decline is concerning as it indicates that consumer spending, a key driver of economic growth, remains weak.
Furthermore, inflation in the UK remains stubbornly high, staying well above the Bank of England’s 2% target rate. The Consumer Price Index (CPI) rose by 1% in July, largely driven by rising prices for clothing, footwear, and household goods. This elevated inflation rate is concerning as it erodes people’s purchasing power and puts further strain on household budgets.
The combination of these economic indicators paints a bleak picture of the UK’s current economic situation. With GDP falling, retail sales crashing, and inflation remaining double the target rate, the challenges facing the country’s economy are significant. The road to recovery will undoubtedly be long and challenging, particularly as the threat of a second wave of COVID-19 looms large.
In response to the economic downturn, the government has implemented various measures to support businesses and workers. The furlough scheme, which has helped millions of workers stay employed during the pandemic, has been extended until October. Additionally, the government has introduced various loan schemes and grants to support small businesses struggling to survive.
However, the road to recovery will require a concerted effort from both the government and the private sector. It will be essential to stimulate consumer spending, boost business confidence, and encourage investment in order to kickstart economic growth. As the UK navigates its way out of the recession, strong leadership and decisive action will be crucial to ensure a sustainable and inclusive recovery for all.
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US is in recession and China is totally screwed
ARE INDIAN INVADE ENGLAND ??
I know Brits think it’s crazy the US doesn’t have universal healthcare (it is), but I find it absolutely insane that most mortgages are ARMs in the UK.
Please just don’t blame Russia
Working from home is non productive from what I can see….. working harder stimulates the economy.. tax breaks and incentives need to happen.. The Government needs to do more and help it grow… the up and coming election will not help as MPs are only in it for themselves.. Also Cryptocurrency like Bitcoin will take over the pound/dollar/yen as a main asset. These currencies are losing 7% per year. Inflation does not affect it and it’s been the best performing asset on the planet since time began…
There was no mention of the cost involved with all the illegal migrants coming over which costs $billions per year, surely
Awwwww…. looks like all that Russia hate was bs that backfired. Sad that Russia will do better because of all the lies on your end.
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Even though I plan to stick with it, inflation is wasting my money and my portfolio is losing gains every day, so I need a cure right away. My main concern is how to raise the value of my cash reserve because it has been lying there for a very long time with little to no increases and inflation is currently about 3.4%.
Conclusion: The UK is fuck3d.
Canada and US are also in recession.