The coronavirus outbreak and the shutdown measures to contain it have plunged the global economy into a severe contraction. Among the developed economies most affected by the pandemic, the United Kingdom has gone out on top, snatching victory from France.
The Organization for Economic Cooperation and Development counted the financial losses from the first wave of the pandemic and found the UK the hardest hit by Covid-19. The local economy suffered the biggest slump on record. Its GDP plummeted by 20.4 percent in the second quarter. The restrictions introduced by the government to prevent the spread of the infection resulted in tremendous costs and pushed the economy into recession. In the wake of the lockdown measures, the UK's public debt increased, exceeding 2 trillion pounds for the first time ever. In addition, the Bank of England warns that 2020 could be the worst year for the British economy since 1706. The country's GDP is expected to shrink by at least 14 percent by the end of this year.
In general, gross domestic product in the OECD area decreased by 9.8 percent in the second quarter compared to the previous three months. Founded in 1961, the OECD is one of the leading economic organizations which includes 37 of the world's highly developed economies.
