By Holly Williams, PA
BRITAIN has collapsed into its largest recession on record after the coronavirus lockdown sparked a 20.4% contraction between April and June in the biggest slump of any major global economy.
The UK’s nosedive into recession – as defined by two quarters in a row of falling output – marks the first since the 2008 financial crisis, with the eye-watering second-quarter plunge following a 2.2% fall in the previous three months.
The official figures confirm the UK was the hardest hit of all the major developed economies in the second quarter, even beating Spain’s 18.5% decline and double the contraction seen in the United States.
But monthly data showed a recovery from the nadir of the recession in April gathered pace, with the economy bouncing back by a better-than-expected 8.7% in June as lockdown restrictions eased.
This followed upwardly revised growth of 2.4% in May.
The Office for National Statistics (ONS) said the economy is still a long way off from recovering the record falls seen in March and April.
Chancellor Rishi Sunak said that the ONS figures “confirm that hard times are here”.
He said: “Hundreds of thousands of people have already lost their jobs, and sadly in the coming months many more will.”
