COVID-19 and the UK Economy- August 2020
The COVID-19 crisis has hit the UK hardest among the world’s developed nations, according to new figures released by Britain’s Treasury. The economy shrank by 20.4% – a record – in the 2nd quarter of the year, a period which includes most of Britain’s lockdown. The low point was in April, when output was more than 25% below the pre-pandemic level.
Some of that decline has been overcome, as the economy grew a record 8.7% in June. However, economist Suren Thiru believes this recovery is unlikely to be sustained because it represents the release of ‘pent-up demand’ rather than an improvement in underlying conditions.