After the pandemic, only few countries can boast of their economic recovery. The US, China, and the European Union are among those whose economies are getting back on track. At the same time, the UK’s economy has not yet reached the bottom to start rebounding.
While economies of the US and China are showing unexpectedly positive figures, the UK cannot even halt the slump. According to the recent data, the UK’s GDP dropped the most in the last 40 years. The country last saw such an economic slump in 1979. The Office for National Statistics reported that from January to March, the UK’s GDP tumbled by 2.2%. Analysts suppose that the declining consumer activity is the main reason for such a score. The local households have no intention to spend money. On the contrary, they are reducing their expenses. However, even those who want to buy something regularly face various restrictions. "The lockdown of most businesses on March 23 meant that households were unable to spend even if they wanted to," Thomas Pugh, UK economist at Capital Economics, said.
The Bank of England foresees an economic plunge of 14%. It will be the worst reading in more than three centuries that is since 1706. Moreover, the UK’s average salary is expected to fall by 2% this year whereas the unemployment rate may hit 9% compared to 4% at the moment.
