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London falls into recession for the first time in 11 years due to impact of the Coronavirus pandemic

UK has officially fallen into recession for the first time in 11yrs due to the Coronavirus pandemic.

The Office for National Statistics said the UK gross domestic product (GDP) is estimated to have fallen by a record 20.4% in Quarter 2 (Apr to June) 2020, marking the second consecutive quarterly decline after GDP fell by 2.2% in the previous quarter (Jan to Mar) 2020.

This plunged the UK into its first technical recession, defined as two straight quarters of economic decline since 2009.

The deputy national statistician for economic statistics Jonathan Athow, , said the economy bounced back in June after the monthly gross domestic product (GDP) expanded by 8.7% following growth of 2.4% in May 2020, but it wasn’t enough to recover the lost output earlier in the year.

On June the economy began to bounce back with shop reopening, factories which was starting to ramp up the Production and housebuilding continued to recover.

On June the Gross domestic product(GDP) still remains a sixth below its levels in februsry before the Virus attacked.

The ONS said the collapse in output was driven by the closure of shops, hotels, restaurants, schools, and car repair shops.

The services sector, which powers four-fifths of the economy, suffered the biggest quarterly decline on record, the report said.

The construction sector was particularly badly hit, after building sites were shut down during the height of the lockdown.

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