UK enters recession after GDP plunges 20.4%

Britain has officially entered into the largest recession on record after figures showed the COVID-19 pandemic sent the economy plunging by 20.4% between April and June.

The Office for National Statistics confirmed the UK’s nosedive into recession for the first time since the financial crisis after the record-breaking contraction in the second quarter, which follows a 2.2% fall in the previous three months.

Monthly figures showed the economy bounced back by a slightly better-than-expected 8.7% in June, following upwardly revised growth of 2.4% in May, as lockdown restrictions eased.

Retail sales volumes grew by 13.9% in June as non-food stores recovered from the sharp falls experienced at the start of the Coronavirus pandemic.

The biggest impact to businesses were the restrictions over opening hours, safety and social distancing.

The volume of total retail sales recovers to similar levels as before the coronavirus pandemic. Source: Office for National Statistics.

The ONS said the economy is still a long way off from recovering the record falls seen in March and April after tumbling into “the largest recession on record”.

The second quarter figures showed the UK suffered the biggest economic hit from the pandemic in western Europe, even beating Spain’s 18.5% drop.