UK’s economy shrinks by 1/5th during lockdown

The UK’s economy grew by 1.8 percent in May but has faced a downfall up to 1/5th during the lockdown.

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The UK’s economy grew by 1.8 percent in May but has faced a downfall up to 1/5th during the lockdown.

The rise of 5 percent in May was not predicted by economists. But the recovery was a good sign as the lockdown began to ease. Manufacturing and housebuilding began to recover as workers returned to work during the month. However, manufacturing faced a 22.3 percent reduction in February. The vital services sector, which makes up more than three-quarters of Britain’s economy, is 24.2 percent down.

The overall output rate reached 24.5 percent which is expected to be the biggest recession in a century. Moreover, the GDP is assumed to be 20 percent below February’s level in June. The output will have fallen 21 percent in the second quarter of the year, causing a contraction of up to 14.3 percent.

Last month, the banks of the UK released the stats showing a recovery in the economy of the country. “Manufacturing and house-building showed signs of recovery as some businesses saw staff return to work. However, many sectors did not show a positive output at all. Online retailers enjoyed record growth of 12 percent in May but that was not enough to make up for lost high street sales. Non-essential retailers showed up on June 15, with a slight good sale.

The chancellor announced a £30bn package to curb the unemployment rate. But economists questioned whether the plans, which include a £1,000 bonus for each furloughed employee kept on until January, would be enough. Many laborers criticized this move. The majority believes that it is because the coronavirus is still not under control. Moreover, health fears weigh more than financial worries.

In an interview, 100,000 people across dozens of countries, out of which only one-quarter of consumers agreed on returning to normal consumer activity as soon as government restrictions are lifted.