Looking forward, into the 3d Quarter of 2020, experts expect much better numbers for UK economy than in the first half of the year. However, London top financial analyst, working at the City, told Sputnik that there will still be economic shrinkage, roughly 8% on a year-on-year basis.
Britain found itself in the middle of a recession, following the Covid-19 pandemic of 2020. Amid numerous business closures, the latest announcement came from Natwest Bank, which on 12 August reported it will cut 500 jobs to cut costs.
A City analyst told Sputnik that although the GDP number has been unprecedented in the recent history of UK, having sunk 20.4 percent in Q2 of 2020 – the major factor was the complete shutdown of the economy in March and April.
Since April, the services sector (June), the hospitality sector (July) and the “eat out to help out” move (August) have kicked off which would have a positive impact on the economy, he explained.
In regards to government plan – going forward – fiscal support is anticipated in autumn, and the Bank of England is expected to proceed with further Quantitative Easing (QE).
The UK has been hit hard by the coronavirus pandemic, with the highest death toll in Europe registered in Britain, mounting to 46,611 deaths. As a result of businesses shutting down during the lockdown, “hundreds of thousands of people have already lost their jobs,” as per the UK Chancellor of the Exchequer Rishi Sunak.
“…and sadly many more will,” Sunak added.