GDP drops unprecedented 20.4 % in one month

By rotide
Created 12/06/2020 - 19:54

April figures released today by the Office of National Statistics (ONS), reveal some of the economic damage wreaked on UK production by the Coronavirus, with a huge hit of 20.4 %. No surprise really and this won't be the last shock to the UK economy we will experience. This follows a drop of 5.8% in March. The combined loss of a quarter of UK production in  two months kicks us well and truly into a recessionary period, with many industries still suffering from continued lockdown in their sectors. A bounce back is expected  but the numbers are not going to be that palatable for some time. May will be grim also, airlines are hardly getting off the ground, pubs aren't opening and restaurants aren't serving.  

Only this week we have seen the Restaurant Group announce that 125 closed Frankie and Benny restaurants are going to stay that way, losing 3,500 jobs. Centrica, parent of British Gas are going to lose layers or management with  around 5000 staff going. They follow Easyjet and British Airways also cutting back to survive and the major pub chains must be seriously planning similar exercises, having their doors closed for three months, though Government support schemes should be easing the pain a little. How much pain has been eased remains to be seen with companies looking to reduce staff before the virus arrived, having a perfect excuse to do so.

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