A consequence of the pandemic: Minus 20 percent of British economic output will drop dramatically

The UK's economic output has shrunk as a result of the Coronavirus a pandemic in a record pace. The gross domestic product of the United Kingdom decreased from

A consequence of the pandemic: Minus 20 percent of British economic output will drop dramatically

The UK's economic output has shrunk as a result of the Coronavirus a pandemic in a record pace. The gross domestic product of the United Kingdom decreased from April to June to more than 20 percent compared to the previous quarter, as the statistics office announced on Wednesday in London.

Previously interviewed experts had expected a decline of this order of magnitude. For comparison: The German economic performance fell during the same time a good 10 percent.

According to the forecast of the British Central Bank, the gross domestic product will fall this year because of the pandemic a total of 9.5 percent – that would be an economic downturn, as the UK has not seen since about 100 years. Next year, to be followed by forecasts that a growth of nine per cent.

Many unemployed

The Corona-crisis on the labour market in the UK, a deep mark, even if the unemployment rate in superficial examination appears favorable. In July, 730.000 people had less employment in companies as in March, the latest data from the statistical office, ONS. In addition, more than 7 million employees not currently in the Job, including the forced leave.

According to the ONS, especially the very young and older Workers as well as people in simple activities. The working volume is broke on the peak of the crisis in the second quarter, literally. "These data show the devastating traces of the Coronavirus crisis on the labour market," said Matthew Percival of the business Association, the CBI.

The officially calculated unemployment rate remained, however, at 3.9 percent in June. This is because many companies wait with redundancies and staff instead of taking a leave of absence.

This is a huge support program in the state furloughed the Forced four-fifths of the salary, to a maximum of 2500 pounds (about 2750 Euro) pays helps. According to the latest data from the Treasury a total of 9.6 million employees are currently getting money from this program, in addition, 2.7 million received Independent financial support.

Updated Date: 12 August 2020, 08:19

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