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The UK is in a technical recession for the first time in a decade

Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
The pandemic was merciless to the UK

The second quarter of 2020 has been difficult for some global economies, as they entered pandemic induced recessions.

The latest report from the Office for National Statistics (ONS) showed that the British economy underwent the biggest Q2 slump on record. In just three months, the UK economy contracted by 20.4% due to a plunge in household spending, business closure, and a fall in construction output. Also, the car manufacturing sector recorded the slowest production since 1954. The decline was slightly better than the 21.2% forecasted. 

Since the beginning of the year, the economic output fell by 22.1%. But some countries had it worse, such as Spain, whose economy contracted by 22.7%.

However, there’s a silver lining for this battered economy. According to ONS, the economy grew by 1.8% in May, and 8.7% in June. For 2020, economists expect the economy to contract by 9.5%. 

Currently, UK100 is trading 1.58% higher, while GBP/USD is 0.38% lower. 


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.