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  4. British economy shrinks 2% as coronavirus pandemic continues to wreak havoc in UK

British economy shrinks 2% as coronavirus pandemic continues to wreak havoc in UK

Official figures show that the British economy shrank 2% in the first quarter of the year from the previous three-month period as restrictions on economic activity were ramped up ahead of the coronavirus lockdown towards the end of March.

AP Edited by: AP London Published on: May 13, 2020 12:22 IST
An image of Florence Nightingale is projected on the Houses of Parliament in Westminster, London, on
Image Source : AP

An image of Florence Nightingale is projected on the Houses of Parliament in Westminster, London, on International Nurses Day and to mark the 200th anniversary of the birth of the nurse, Tuesday, May 12, 2020. Historians have praised Florence Nightingale on the 200th anniversary of her birth, and said her legacy has "never been more relevant" amid the coronavirus pandemic. Staff at the Florence Nightingale Museum in Westminster said her key nursing values – which focused on maintaining good hygiene, regularly washing hands and carrying out evidence-based practices – have been widely echoed over the past months.

Official figures show that the British economy shrank 2% in the first quarter of the year from the previous three-month period as restrictions on economic activity were ramped up ahead of the coronavirus lockdown towards the end of March.

The decline is the biggest since the global financial crisis in 2008 and is the first indication of the coronavirus' growing impact on the economy ahead of the British lockdown on March 23. In March alone, the British economy shrank by 5.8%.

That monthly fall is an indicator of what has occurred since, with many economists predicting that the second quarter could see British economic output shrink by a quarter, or even more.

Last week, the Bank of England warned that the British economy could fall by around 30% in the first half of the year, before a strong recovery in the second half of the year, leaving it 14% smaller by the end of 2020. Still, even with that predicted second-half recovery, the annual fall would be the biggest since 1706.

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