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

By: Miguel A. Rodriguez

09:45, 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. 


Share this article

The information presented herein is prepared by and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.                                                                                                                            Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation.Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.