On May 7, 2020, CNN posted an article with the headline, “The UK economy is heading for its worst crash in 300 years”. CNN stated a recent forecast from the Bank of England indicated it could happen.
“The central bank said Thursday that the British economy could shrink by 14% this year. That would be the biggest annual contraction since a decline of 15% in 1706”.
Bloomberg’s August 11, 2020 article titled, “UK’s Worse Slump in Europe Raises Pressure to Sustain Rebound” included the final quarterly GDP figure.
“Gross domestic product plunged 20.4% in the second quarter… roughly double that of Germany and the U.S.“
Other Worries
According to Bloomberg,
“The country also has Europe’s highest death toll from the coronavirus, and probably has the worst downturn of any major economy worldwide.”
UK’s June output showed a substantial rise of 8.7%. However, the article also referred to “worrying signs that the upturn could soon run out of steam”.
And on top of all of that, hopes of London reaching an acceptable Brexit deal by the end of 2020 with the EU, regarding trade and other issues, look rather dismal at this point.
Boomberg added,
“Chancellor of the Exchequer Rishi Sunak acknowledged that more pain is to come.”
Photo Credit: UK Pounds by Howard Lake, License: CC BY-SA 2.0.
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