LONDON: Britain's coronavirus-ravaged economy slumped almost one-fifth during the country's lockdown and remained set for its sharpest decline in annual output for 300 years, official data showed Tuesday.
The Office for National Statistics (ONS) said gross domestic product plunged 19.1 percent in the three months to the end of May "as government restrictions on movement dramatically reduced economic activity".
The Office for Budget Responsibility, in charge of the government's economic forecasts, said the "UK is on track to record the largest decline in annual GDP for 300 years", estimating that the economy could shrink by as much as 14.3 percent in 2020.
The Bank of England had already forecast that the UK economy could have its sharpest annual contraction in centuries. GDP output grew 1.8 percent in May from April as the government began to ease restrictions, particularly boosting construction and manufacturing.
May's data "is a disappointing first step on the road to recovery and suggests that hopes of a rapid rebound from the lockdown are wide of the mark", noted Capital Economics analyst Thomas Pugh.
The UK economy remains about 24.5 percent below its size in February before the pandemic spread. The OBR said in a worst-case scenario, British GDP would recover to pre-crisis levels only in the third quarter of 2024.
Comments
Comments are closed for this article.