Britain’s economy shrank by a record 20.4% in April from March as the country spent the month in a tight coronavirus lockdown. BillReuters and david_milliken report
LONDON - Britain’s economy shrank by a quarter in the March-April period as entire sectors were shuttered by the coronavirus lockdown, reaching what looks likely to be the bottom of a “catastrophic” crash before a long and slow recovery.
Both readings were below the unprecedentedly weak forecasts in a Reuters poll of economists. The Office for National Statistics said the economy had shrunk back to its size in 2002. However, the Organisation for Economic Co-operation and Development says Britain - with its huge services industries which are hit hard by social distancing measures - could suffer the worst downturn among the countries it covers, with an 11.5% contraction this year.
Bank of England Governor Andrew Bailey - who has warned of the deepest recession in three centuries this year - said on Wednesday he could see some signs of a recovery but long-term economic damage remained likely.
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