Low point overcome?: British economic output has shrunk by 20 percent

Britain's economic output collapsed in the middle of the Corona-crisis in April to 20 percent, reported the statistics office the ONS in London on Friday. The crash of the economic performance of 20.4 percent compared to the previous month was more than three times as much as in the financial crisis twelve years ago, highlighting the statisticians. In five industries, including the restaurant industry, said more than 75 percent of the companies that they had completely closed, and paused. In the construction industry activity fell by 40 percent.

Philip Plickert

economic correspondent based in London.

the UK government on may 23 had. March "Lockdown", so the far-reaching closure of all non-essential shops and public life is arranged, in order to combat the spread of the Coronavirus. Similar lock downs, mostly something previously adopted, have also led in other countries to a deep recession.

According to the OECD's new forecast of this week, the economy is set to contract in the UK this year to a total of 11.5 percent. This is slightly more than the OECD recession forecast for France and Italy.

the low point overcome?

Meanwhile, the Lockdown will be lifted in the UK again, gradually, after the Corona-decreased Infection rates significantly. In the next week allowed to re-open more shops.

The British chamber of Commerce BCC said the new Figures of the statistician, that April was probably the low point of the economy of the United Kingdom. With the gradual easing of restrictions and the re-opening of the shops have it up now and again. "The prospect of a 'V' shaped recovery remains unlikely, however, because there are many sectors that can only work with a limited capacity," the chamber of Commerce. Many companies, including those in the hospitality, leisure and tourism industry will remain for some time closed, and the required flexible support for the government.

The officially reported unemployment, which stood in front of the Corona-crisis 4 per cent, has not yet risen particularly strongly, because most of the shocks of state support programs is cushioned to the "leave of absence" of employees. The state pays 80 percent of the salary, to a maximum of 2500 pounds (2750 Euro).