Q2 this year coincided with the peak of the COVID-19 pandemic when the vast majority of economies worldwide imposed lockdown measures. Recently, national statistic agencies reported their GDP data for the June quarter. Having evaluated those metrics, experts at The Daily Telegraph estimated the extent of the coronavirus-driven crisis for the eurozone countries. Experts found out a striking difference between winners and losers in the battle with COVID-19. “The UK economy is set to suffer the biggest COVID hit in Europe after a long lockdown combined toxically with the UK’s heavy reliance on the service industry and “social consumption”,” The Daily Telegraph comments on the post-pandemic economic conditions in the UK. The national output tumbled 21% in annual terms in Q2 2020 that looks dreadful compared to other European countries. The British economy survived the worst quarter since the records began in 1955. Besides, analysts warn the British authorities of bleak prospects for the whole 2020. The slump in the UK’s economy could be twice deeper on a yearly basis than the contraction in the US economy. Experts predict at least a 10.6% fall in 2020.
They pinpoint the reasons behind such a dismal economic performance. Originally, London downplayed the gravity of the situation and hence imposed restrictions later than other European countries. Secondly, the longer duration of its lockdown could mean that the UK’s economic recovery is also lagging behind others. Another factor to add to the doom and gloom is that the UK government is running out of options for economic stimulus. So, the Kingdom is braced for another tough challenge this autumn.
