Britain’s authorities have finally quashed rumors claiming that the UK has entered the deepest recession.
Chancellor Rishi Sunak has warned the public that “hard times are here” and many more people will lose their jobs in the near future. The economic recession has already begun and this is proved by the recent statistical data. Thus, in the second quarter, the UK’s GDP slumped by 20.4%. The UK has been hit harder than other G7 economies. Sunak noted that a record GDP contraction was the result of lower sales of goods and purchasing power of citizens as well as of the mass closure of companies for several months. The economic slump was mainly triggered by the forced closure of stores, hotels, restaurants, schools, auto repair shops, and other businesses from the service sector.
The UK can be regarded as a services economy as four-fifths of GDP comes from the service sector. During the pandemic, this sector showed the largest drop since the record began. To sum up, there is no use to spread rumors about the economy’s resilience as figures prove the opposite.
